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[Ferro-Alloys.com] Japan's biggest carmaker Toyota Motor will maintain domestic production cuts next month but expects its July car output to recover from June's low.

 

Toyota said it plans to continue making output adjustments at domestic car assembly plants next month because of weak new car sales as a result of the Covid-19 outbreak. The company plans to halt six production lines at three assembly plants for a total of 16 days in July, while reducing shifts to one from two at three production lines at two of the assembly plants. It also plans to operate four production lines at three plants on certain Saturdays next month.

 

The company expects its July car production volumes to fall by 10pc from its original plan for the month but still rise from June, when output dropped by around 40pc from its initial target.

 

Toyota also plans to maintain output cuts at the second production line at its Gifu plant until September by operating a single shift from two previously.

 

Toyota's domestic car output in April declined by 26pc on the year to 218,054 units, according to the latest available data.

 

Another carmaker, Daihatsu Motor, said it plans to halt car output at its main plant for two days in July. Daihatsu is a wholly-owned subsidiary of Toyota.

 

Rival carmakers Honda Motor and Nissan Motor have also detailed planned domestic output cuts in July in response to reduced car sales.

 

Economic activity in Japan is further recovering after the country eased more Covid-19-related restrictions. But the effects of the outbreak are continuing to pressure steel and metals demand from the manufacturing sector, including carmakers. Japan's crude steel output in May fell below 6mn t for the first time since April 2009.

 

Source: Argusmedia