Toyota Motor Corp. is planning to produce over 10 million vehicles globally in 2026, maintaining a similar level to this year. The company’s decision is driven by strong demand for hybrid vehicles in North America. Toyota has already informed its parts suppliers of the plan, which includes increasing domestic production in the United States and other countries. Despite facing challenges such as higher tariffs imposed by the US government, the company has been steadily ramping up production.
In Japan, Toyota’s domestic production is expected to exceed 3 million vehicles next year, a level necessary to maintain employment and technological capabilities. The company’s global output for this year, up to November, has already risen 4.9% from the previous year, reaching 9,175,827 units. This figure does not include production from Toyota’s subsidiaries, Hino Motors Ltd. and Daihatsu Motor Co.
Toyota’s production plans are cautious, considering the estimated impact of US tariffs on its operating profit. The company expects the tariffs to cut its group operating profit by 1.45 trillion yen ($9 billion) in fiscal 2026, which begins next April. The company’s global production first exceeded 10 million units in 2023, but slipped to 9,521,876 units the following year due to a quality scandal and intense competition in China.
The decision to maintain production levels is significant, given the current market conditions. Toyota’s commitment to hybrid vehicles has paid off, with strong demand in North America driving sales. The company’s ability to navigate the challenges posed by tariffs and global competition will be crucial in maintaining its position as the world’s largest automaker by volume. By producing over 10 million vehicles in 2026, Toyota aims to balance its growth with the need to maintain employment and technological capabilities, both domestically and globally.