Toyota car sales fall for seventh straight month on China slump

Toyota Motor's car sales continued to decline for the seventh consecutive month in August due to a persistent decline in China, where legacy brands are facing increasing competition from local electric-vehicle manufacturers. Sales of Toyota and Lexus brands dropped 23% in China's largest auto market during the same period, primarily due to weak demand for gasoline and hybrid vehicles.

This decline in Chinese sales contributed to a global reduction in Toyota's deliveries, which fell by 7.5% compared to the previous year. The Japanese manufacturer attributed the slump to consumers' reluctance to make expensive purchases amid a housing crisis and the impact of soaring oil prices, exacerbated by conflicts in the Middle East.

Despite challenges, Toyota and Lexus managed to increase sales by 2.6% in Europe and 9.1% in Japan, driven by strong demand for new models, particularly hybrids. In the United States, sales declined by 4.4%, while they fell by more than a third in the Middle East. Earlier this year, Toyota had reported that hybrid sales were projected to surpass 5 million units in 2026.

The Japanese carmaker boasted a robust lineup of hybrid vehicles, which provided it with a competitive advantage in the United States, where Chinese brands, including BYD, have been hindered by substantial tariffs.