Toyota car sales fall for seventh straight month on China slump

Toyota's car sales experienced their seventh consecutive monthly decline in August, largely due to a slump in the Chinese market, the Japanese manufacturer announced on Tuesday. The decline was primarily driven by weak demand for gasoline and hybrid vehicles in China, a country that represents the company's largest market.

In August, Toyota and Lexus sales in China plummeted by 23%, according to the report. This sharp drop in sales had a detrimental effect on the company's global deliveries, which fell by 7.5% compared to the previous year. The ongoing real estate crisis in China has led consumers to shy away from expensive purchases, further exacerbating the situation for Toyota and its competitors.

Despite the challenges in China, Toyota and Lexus experienced growth in other regions. Sales in Europe rose by 2.6%, while they increased by 9.1% in Japan, largely due to robust demand for new models, particularly hybrids. However, sales in the United States fell by 4.4%, and they declined by more than a third in the Middle East.

Earlier this year, Toyota had stated that hybrid sales were projected to surpass 5 million units by 2026, giving the company a competitive edge in the United States, where Chinese brands face steep tariffs.