22:27 06-04-2026

Toyota's new factory in Japan struggles with worker shortage

Toyota's first new plant in Japan since 2012 faces a worker shortage, threatening production and Japan's economy. Learn how foreign workers are key to future auto industry needs.

Toyota is preparing to launch its first new factory in Japan since 2012, but the project faces a serious challenge: a shortage of workers. The company already recognizes that maintaining production volumes will be impossible without bringing in foreign specialists.

The plant is scheduled to open in the early 2030s and is intended to be a key element of the strategy to keep production within the country.

Japan is experiencing a decline in its working-age population, which directly impacts the automotive industry. Currently, the industry employs about one million people, but the share of foreign workers is only around 9%, which is insufficient for future needs. Projections indicate that by 2040, nearly a third of auto industry workers will need to be foreign; otherwise, the country risks losing a significant portion of its production. Already, areas around Toyota's facilities are seeing an increase in foreign workers involved in supply chains and component manufacturing.

A reduction in vehicle output could hit not only Toyota but Japan's economy as a whole. Expert estimates suggest that a 10% drop in production could reduce the country's GDP by nearly 1%.

Beyond workforce issues, the company is reevaluating its production standards. The new strategy involves moving away from overly strict quality requirements that drive up costs but aren't always crucial for customers.

This move is part of Toyota's effort to adapt to competition from Chinese brands, which offer more affordable and technologically advanced vehicles.