Toyota Plans New Factory Despite Domestic Sales Dip

Toyota Motor Corporation revealed its plan on Thursday to establish a new vehicle manufacturing facility in its eponymous city, located in central Japan. The factory is expected to commence operations in the early 2030s, although the specific models to be produced have not yet been determined, according to the company's statement, which also included financial results for the April-to-June quarter.

The move to build a new domestic factory by the world's leading automaker comes amid a challenging environment where Japanese car sales are declining due to a shrinking population and falling car ownership rates. It's notable that the last assembly plant Toyota established in Japan was in 2012. The announcement also coincides with ongoing concerns from U.S. President Donald Trump over the influx of Japanese vehicles into the U.S. market, which he claims contribute to a significant trade deficit.

Toyota maintains a policy of producing 3 million vehicles annually in Japan, of which approximately half are exported to overseas markets. This strategy underscores the company's commitment to a strong manufacturing presence in its home country despite domestic market pressures.

(With inputs from agencies.)