Toyota to make cars in Taiwan and sell them in Japan, Nikkei reports – Firstpost

Japanese auto giant Toyota Motor will begin importing Taiwan-manufactured Noah and Voxy minivans into Japan from October, in an unusual move aimed at easing domestic production constraints and tackling persistent delivery delays, according to a report by Nikkei Asia.

The company is expected to establish a dedicated assembly line in Taiwan specifically to produce vehicles for the Japanese market — a rare step in Toyota’s global manufacturing strategy. Reverse-import vehicles have traditionally been cars built overseas for local markets and later shipped back to Japan, making Toyota’s decision to create an offshore line dedicated to domestic Japanese demand highly unusual, the report said.

Toyota currently manufactures the Noah and Voxy models in Japan, where they are among its best-selling minivans, with annual sales of roughly 70,000–80,000 units. However, strong demand and capacity limitations have pushed delivery waiting periods beyond a year at times, forcing temporary order suspensions.

According to Nikkei Asia, Toyota plans to produce around 100,000 vehicles annually from its Taiwan facility, focusing largely on lower-priced variants. The production will take place at a northern Taiwan plant already manufacturing models including the Corolla sedan and Yaris Cross SUV through a local joint venture. Domestic production in Japan will continue in parallel.

The move comes as Japan’s manufacturing sector faces increasing strain from labor shortages, rising material and labor costs, and tighter production capacity. Toyota has maintained a goal of keeping annual domestic output above 3 million vehicles to support employment and preserve Japan’s industrial ecosystem, but sustaining that model is becoming more costly.

The pressure intensified following certification-related irregularities in 2024 that forced Toyota to strengthen compliance and testing systems, leaving less room to expand domestic production. Toyota President Kenta Kon reportedly described prolonged supply shortages as an “abnormal and critical situation,” warning that long delivery delays could push customers toward rival brands.

Nikkei Asia also noted that reverse-import vehicles are becoming more common among Japanese automakers. Data from the Japan Automobile Importers Association showed such imports rose 19% year-on-year to 111,513 vehicles last year — the highest level in three decades.