Key Facts
• Toyota will resume price reduction requests to suppliers in October 2025.
• This marks the first such request in four years, last paused in 2022.
• Requests are made twice annually to enhance product competitiveness.
• Resumption is due to stabilized material costs despite ongoing tariff impacts.
• Only profitable suppliers with capacity for reductions will be targeted.
• Toyota will continue supporting suppliers with wage increases and workplace improvements.
Summary
Toyota Motor Corporation will restart price reduction negotiations with its small and medium-sized suppliers in October 2025, a practice paused since 2022 due to inflation. These requests, conducted twice annually, aim to boost product competitiveness. The decision follows a stabilization in material costs, despite lingering effects of tariffs. Only suppliers deemed profitable and capable of accommodating reductions will be included. Simultaneously, Toyota reaffirms its commitment to supporting suppliers through wage increases and workplace enhancements.
