According to a report based in Toyota ’s domestic market of Japan, the automaker is planning to reduce the production of vehicles in Japan by a full 20 percent due to the anticipated drop in demand as government subsidies are set to go away.
Japan has provided substantial subsidies – more than $2,500 – for the purchase of “eco friendly” vehicles such as the Prius, but now the government is set to end these subsidies, a move so substantial that Toyota expects demand to drop by roughly 20 percent, according to Kyodo News, via Reuters.
Toyota currently produces 14,000 vehicles each day in Japan, a figure expected to drop to 12,000 units – or possibly less – beginning in October.
Despite the sharp drop in production, Toyota is still expected to maintain its annual production target of 3.2 million vehicles.
References
1.’Toyota to cut domestic production…’ view
