Toyota Motor Corporation requested parts suppliers reduce costs for the second half of fiscal year 2026. The cost-reduction period spans from October 2026 to March 2027. Toyota will negotiate individual reduction rates based on specific business conditions instead of applying uniform cuts.
The company also raised the price of automotive steel sheets supplied to manufacturers by approximately 12,000 yen per ton. This increase marks the first time Toyota has raised steel sheet prices in four years.
The price adjustments follow a settlement with Nippon Steel and serve as a benchmark for domestic transactions in Japan. This dual strategy of demanding lower part prices while increasing raw material costs may significantly strain supplier profitability.