Toyota monthly sales fall as China slump enters eighth month

[TOKYO] Toyota Motor’s car sales fell in September, dragged down by a months-long drop in China where higher gas prices are weighing on demand for non-electric vehicles.

Global sales, including those of subsidiary Daihatsu Motor, fell 2.9 per cent from the year-ago period to 921,847 units, the company said on Thursday (Oct 29). Production declined 4.5 per cent to 989,168 vehicles.

China, the global car industry’s leading market, has proven difficult for the world’s biggest carmaker.

Strong demand for new or hybrid models has let Toyota maintain or even grow its sales in Japan, Europe and the US. But sales in China have fallen for eight straight months, fuelling the same stretch of declines in broader sales.

Legacy manufacturers have been struggling to compete with Chinese brands churning out battery-powered cars that cater to the demands of customers who want the latest in features and onboard software.

Toyota and Lexus brand sales in China fell 20 per cent in September. Sales edged up 1.8 per cent in Japan and 8.6 per cent in North America, due in large part to a rebound in the popularity of gas-electric hybrid vehicles – a technology pioneered by the Japanese carmaker.

In August, Toyota raised its profit outlook for the fiscal year ending March 2027 to 3.4 trillion yen (US$21.5 billion), emboldened by US demand for hybrids and a cushion provided by currency tailwinds.

The manufacturer had forecast a rare drop earlier this year, as it braced for higher raw material costs stemming from the conflict in the Middle East.

Toyota also said hybrid sales are on track to exceed five million units for the first time in 2026.

SEE ALSO

Toyota, Honda face biggest hit from Trump’s proposed 50% tariff on Canadian cars

Toyota car sales fall for seventh straight month on China slump

Meanwhile, Honda Motor’s sales fell 6.5 per cent in September to 271,402 units, including a sharp 53 per cent drop in China.

Nissan Motor had a 62 per cent decline in China sales in November, with a 10 per cent slump globally. BLOOMBERG