Toyota will raise parts procurement prices in H1 2025

Published: Jul 3, 2025 16:59

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Recently, Toyota Motor announced that it would raise the procurement prices of automotive parts in the first half of fiscal year 2025, with an expected increase ranging from 10% to 15%. This move is based on considerations of the market environment and future strategy, rather than being a random decision. The uncertainty in the global economic environment has increased, and Japanese supply chain enterprises are facing multiple pressures from energy costs, raw material prices, and labor costs. Over the past few years, energy expenditures in the Japanese manufacturing industry have increased by over 15% annually, and labor costs have also risen year by year. Toyota recognizes that the stability of its supply chain is crucial to its own development. Therefore, this increase in procurement prices aims to alleviate the cost pressure on suppliers and ensure the delivery and quality of future products. This move is not only one of the strategies to strengthen the supply chain's risk resistance capabilities but also beneficial to other original equipment manufacturers (OEMs) in the automotive industry.

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