First Automobile Works Toyota continues to reduce production to relieve pressure on dealers. Inventory is concentrated in second and third-tier cities.

Streamlining Production First Automobile Works Toyota Eases Pressure on Dealers by Lowering Output to Concentrate Inventory in Second and Third-Tier Cities

【PhoneAuto News】Recently, PhoneAuto noticed that FAW-Toyota Motor Corporation has shown a positive attitude and taken measures in response to market changes. In a letter to its dealership partners, FAW-Toyota revealed that in order to alleviate the inventory and financial pressures on dealers, they have significantly reduced production in October and November.

FAW-Toyota stated that in the next three months, the company plans to continue to drastically reduce production allocation to further assist dealers in coping with inventory and financial pressures. This move demonstrates the company’s keen market insight and profound care for its partners.

According to a staff member at a dealership in Beijing, FAW-Toyota’s inventory vehicles are mainly concentrated in second and third-tier cities such as Jinan, with relatively little impact on Beijing, Shanghai, and other areas. This indicates that FAW-Toyota’s production adjustment strategy has begun to take effect, while also highlighting the differences in sales and demand situations in different regions. In the automotive industry, a backlog of inventory vehicles often brings financial and operational pressures to dealers. The measures taken by FAW-Toyota this time undoubtedly represent a proactive response to the market situation and strong support for its own partners.

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According to official data, in the first half of 2023, FAW-Toyota sold a total of 373,195 vehicles, a year-on-year increase of 6%; electric vehicle sales reached 114,376 units, accounting for 31%. At the same time, in the first half of 2023, FAW-Toyota sold a total of 99,895 HEV vehicles, accounting for 26% of the overall HEV market share; sales of medium and high-end models reached 170,822 units, accounting for 46%.

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