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Toyota Motor Corp reported a decline in global sales and output in July, marking the first such drop in two months, due to reduced demand in China driven by higher gasoline prices resulting from the Middle East conflict. The company's global sales fell by 4.8 percent year-over-year to 856,125 units, while global production decreased by 2.1 percent to 828,629 vehicles.

Overseas sales, which accounted for 99.2 percent of Toyota's total sales, slipped 7.6 percent to 706,028 cars, with a significant decline of 24.3 percent in China to 114,747 units. This was primarily attributed to the weak gasoline vehicle market in China, including both traditional gas-powered and hybrid cars. In contrast, sales in North America increased by 0.4 percent to 255,408 cars, bolstered by sustained demand for hybrid vehicles.

Meanwhile, Middle East sales plummeted 44.5 percent to 27,612 units, while exports from Japan to the region rose by 3.0 percent to 25,394 vehicles. The impact of logistics disruptions stemming from the escalating tensions appeared to ease. Toyota's domestic sales in Japan saw an 11.0 percent increase to 150,097 units, driven by strong sales of new models such as the RAV4 SUV, the bZ4X electric vehicle, and the Land Cruiser FJ.

Toyota's overseas production dropped by 9.8 percent to 500,472 vehicles, marking the third consecutive monthly decline, with output in North America and Europe affected due to fewer operating days.