Japan’s domestic car output rebounds on year in May

Japan's domestic automobile production in May increased on the year for the first time in four months, mostly because of output recovery at manufacturer Daihatsu.

Total passenger vehicle output rose to 612,364 units, up by 4.8pc from a year earlier. Production increased, largely because Daihatsu restarted domestic operations in early May. The manufacturer suspended operations in December 2023, when it was accused of tampering with safety test results.

Daihatsu's production still fell on the year by 17pc in May, but the year-on-year declines have slowed from 92pc in February, 66pc in March, and 69pc in April.

The country's car output could continue to recover. Toyota resumed production of the Prius model on 17 June, after it suspended operations following a recall for a safety check in April, according to a company representative who spoke to Argus.

The country's authority in early June ordered Toyota and Mazda to halt some of their car deliveries, following alleged false reporting of safety test results. These disruptions could cut production, but the manufacturers are managing to keep overall output by increasing production of models that are not subject to the order, according to the country's ministry of trade and industry on 2 July.

By Yusuke Maekawa