Toyota estimates factory automation could cost $6.4 billion per year from 2028

Argentina hosts its first Chinese auto show as Chinese brands gain market share, accounting for 10% of August sales. BYD 002594.SZ is now the ninth best-selling brand. Over 20 Chinese brands, including Geely 0175.HK and Chery 9973.HK, were displayed. Toyota 7203.T plans a $1.34B EV plant. Tesla may enter Argentina. Car sales fell 13% YoY due to market adjustment and high interest rates.

Toyota's global vehicle sales fell 7.5% in August, marking a seventh consecutive monthly decline. Overseas sales dropped 8.9%, with China sales down 22.8%. Domestic sales rose 0.2%. Year-to-date, global sales are down 3.6%. The company attributed the declines to weak demand, particularly in China, and higher gasoline prices.

The Bank of Japan's September meeting is expected to raise rates by 25bps to 1.25%, a 31-year high. Financials like Mitsubishi UFJ (8306) and Sumitomo Mitsui (8316) may benefit from wider net interest margins, while exporters like Toyota (7203) could face headwinds from a stronger yen. Governor Ueda's guidance will be key for market direction.

McLaren Automotive plans to open a new UK factory, investing £500 million and creating 1,000 jobs by 2032. The facility will support production of its first SUV, aiming to broaden its market appeal. The company's new owner, L’imad Holding Co, is focusing on turning around McLaren's financial situation. The investment is a boost for the UK's car industry, following recent job cuts at Jaguar Land Rover.

Toyota Motor reported a 4.8% year-on-year decline in global sales for July, totaling 856,125 units, with China's market slump contributing significantly. Domestic sales in Japan rose 11%, while overseas sales fell 7.6%. Electrified vehicle sales increased 15%, accounting for 55% of total volume. Production also declined 2.1% globally, with notable drops in China and North America.

Toyota (7203.T) will start producing next-gen EVs in China by fall 2027, targeting the global market with Lexus SUVs. Production begins at 1,000 units/month, scaling to tens of thousands by 2028. The vehicles will use 'gigacasting' technology for cost efficiency. China's EV market is projected to reach 11.41 million units by 2030, per GlobalData.