Toyota Motor has increased its global production target for 2025 to approximately 10 million vehicles, up from the original 9.9 million units communicated to suppliers in January, according to Nikkei. The revision reflects strong demand for hybrid vehicles in core markets like the U.S., Japan, and China, even as the automaker navigates trade tensions.
The Japanese manufacturer’s new target approaches its 2023 record of 10.03 million vehicles, including the Lexus luxury brand. Toyota reported record global sales for the first half of 2025, driven by robust demand for hybrid vehicles, with electrified models now representing nearly half of U.S. sales.
Despite facing potential costs from U.S. import duties—Toyota said President Trump’s tariffs would cost the company $1.3 billion in just two months—the automaker maintains its commitment to producing roughly 3.3 million vehicles domestically in Japan. This decision contrasts with industry expectations that manufacturers would shift production to avoid tariffs.
A new U.S.-Japan trade agreement cut the 25% Trump-imposed tariff to 15%, providing some relief. The production increase comes as Toyota’s electrified vehicle sales surpassed one million units in 2024, surging 53 percent, positioning the company to capitalize on growing hybrid demand while competitors struggle with slower electric vehicle adoption.
