“Toyota” lays off 1000 employees in China due to declining sales

Toyota Motor Corp has terminated the services of nearly 1,000 employees who were under contract at a company factory in China, where the world’s best-selling automaker is adjusting production in a market that accelerated the shift to electric vehicle adoption.

A spokesman for Toyota said that employees in a joint venture between the Japanese automaker and Guangzhou Automobile Group, known as GAC, had their contracts cancelled before the end of its planned period “in the light of the current production situation.”

The slowing shift to the electric vehicle industry by Toyota, Honda Motor and Nissan Motor is reflected in the form of their lower sales in China, where buyers rely on competitors’ products such as Tesla and PYD.

“Toyota” shipments in China fell for the first time in a decade in 2022, and the hybrid cars and electric vehicles produced by the brand were not very successful among customers in China.

The joint venture “Guangzhou Toyota Motor Co” will also provide the material compensation provided by law, the company’s spokesperson said.

Koji Sato, president of Toyota, pledged last April during the Shanghai Auto Show to accelerate the development of electric vehicles designed for the Chinese market.