Toyota to Shift Some Production from Tokai to Tohoku, Kyushu Regions; Labor Shortages, Disaster Threat Influence Change

A production line for the Sienta minivan and other models in Toyota Motor East Japan Inc.’s Miyagi Ohira Plant
15:12 JST, January 13, 2025
Toyota Motor Corp. has plans to start reorganizing its domestic production system in 2030, it has been learned.
Despite the expected decline in Japan’s population, the automaker aims to maintain its current annual domestic production of 3 million vehicles. It aims to do this while shifting some of its production in the Tokai region, including Aichi Prefecture –— currently around 2.2 million vehicles annually – to the Tohoku and Kyushu regions – currently around 400,000 vehicles annually in each.
According to those involved, the reorganization will begin around 2030 and continue through 2035. Production in Tokai will be reduced to around 1.8 million vehicles, while production in Tohoku and Kyushu will both be increased to around 600,000 each, or around 1.5 times the current level.
The transfer is expected to increase Toyota’s resilience to an expected labor shortage — particularly of young workers — and large-scale disasters, such as a possible Nankai Trough earthquake. It will also allow it to handle increasing its production of next-generation vehicles such as electric vehicles (EVs).
Toyota’s production system greatly influences its business partners, including parts and materials manufacturers. Shifting some production to Tohoku and Kyushu is expected to lead to new employment and capital investment, including among business partners, as well as revitalizing the region’s economies.
Toyota has 14 finished vehicle plants in Japan, most of which are concentrated in the Mikawa area of eastern Aichi Prefecture, including the cities of Toyota and Tahara.

Toyota Motor East Japan Inc., a subsidiary based in Tohoku, produces around 400,000 vehicles a year at its plants in Miyagi and Iwate prefectures. Another subsidiary, Toyota Motor Kyushu Inc., produces around the same amount at its plant in Fukuoka Prefecture. Toyota East Japan employs around 7,000 people, while Toyota Kyushu employs around 10,000.
Currently, many parts are sent to Tohoku and Kyushu from parts manufacturers in Tokai. One aim of the reorganization is to strengthen the development and production of parts within each region so the entire production process can be conducted within them. Toyota also plans to consider having models that are currently only manufactured in Tokai be produced in Tohoku and Kyushu as well.
Tohoku is a production base for Toyota’s compact cars, with its Miyagi Ohira Plant manufacturing the Yaris Cross compact sport utility vehicle (SUV) and the Sienta minivan and its Iwate Plant manufacturing the Yaris and Aqua models.
Toyota Motor Kyushu’s Miyata Plant is the base for the Lexus luxury brand and manufactures its RX SUVs and ES sedans.
The reorganization will result in a decrease in production volume at Tokai. However, Toyota will also strengthen the role of its plants in the region as a hub for cutting-edge technologies such as next-generation EVs and batteries. The personnel freed up by the transfer will be redeployed to develop and introduce new technologies in order to support the company’s plan to sell 3.5 million EVs worldwide in 2030. Toyota will also renovate its aging plants, such as the Motomachi Plant in Toyota City.
The automaker will make a final decision on the scale of the reorganization based on market trends and the status of the EV market.
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