Toyota to hike price of steel supplies for parts makers by up to 30%

Surging material costs stoke inflationary pressures

A Toyota Motor plant in Zarate, Argentina. Steel is believed to account for around 50% of the material cost of a car. © Reuters

MASAHISA YUZAWA, KEI MIYATA, SHUHEI OCHIAI and MOMOKA MATSUMOTO, Nikkei staff writersSeptember 1, 2022 02:02 JST | Japan

NAGOYA/TOKYO — Toyota Motor will increase the price of automotive steel it sells to parts makers by a record of around 40,000 yen ($289) per tonne in the October-March half, following its latest round of negotiations with Nippon Steel.

Toyota is Japan’s largest buyer of steel, and is responsible for sourcing the metal for use both in-house and by its suppliers. Its purchase price serves as a benchmark for contracts in a range of industries from shipbuilding to home appliance, and the latest hike could be felt through a wide swath of Japan’s business sector.

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