Toyota Motor Corporation requested cost reductions from its parts suppliers for the second half of fiscal year 2026. The company will negotiate individual reduction rates with each supplier based on specific business conditions.
Simultaneously, Toyota is raising the price of automotive steel sheets for its parts manufacturers. Steel sheet prices will increase by approximately 12,000 yen per ton.
This decision marks the first steel price hike in four years. Toyota reached the agreement with Nippon Steel following a surge in raw material costs.
The combined demand for lower parts prices and higher steel costs threatens the profitability of Toyota's supply chain.