Toyota Plans to Exceed 10 Million Units Globally by 2026

Toyota has finalized plans to exceed 10 million units in global production (including Lexus) by 2026. This move is intended to address the surging demand for hybrid vehicles (HVs), primarily in the United States. Production will surpass 10 million units for the second consecutive year. Domestic production in Japan is expected to exceed 3 million units.

Toyota has begun informing major component suppliers of these plans. The 3 million unit domestic production target is a goal set by Toyota to maintain its manufacturing technology and employment in Japan, and this target will be exceeded for the fourth consecutive year.

Since there are currently no factors that could cause a decline in production, such as shortages of components like automotive semiconductors around 2022, or certification violations related to “type designation” required for mass production in 2024, Toyota appears confident in maintaining high production levels.

Global cumulative production from January to November 2025 is projected at 9.17 million units, a 5% year-on-year increase. If production continues at this pace, total output for 2025 will reach approximately 10 million vehicles. Given strong sales performance in the US, Toyota will increase exports from Japan to the US from January to November to 560,000 vehicles, a 17% year-on-year increase.

Toyota anticipates tariff costs of ¥1.45 trillion in fiscal year 2025 (ending March 2026), including those borne by parts suppliers. While Toyota has outlined a long-term strategy to increase local production, it remains cautious about making significant adjustments to its production system in the short term.