Toyota global sales drop for 7th straight month amid China slump, output falls 5.9%

Toyota's car sales declined for an eighth consecutive month in August, primarily due to a sluggish market in China, where local manufacturers are rapidly gaining traction with electric vehicles (EVs). The Japanese automaker reported a 23% drop in sales of its Toyota and Lexus brands in China, driven by weak demand for gasoline and hybrid vehicles. This decline in Chinese sales contributed to a 7.5% decrease in global group deliveries compared to the previous year.

The global auto market faces challenges as consumers in China are increasingly avoiding major purchases due to a persistent real estate crisis. Additionally, automakers are grappling with uneven demand for EVs and rising oil prices, exacerbated by geopolitical tensions in the Middle East.

Despite the overall decline, Toyota and Lexus saw a 2.6% increase in sales in Europe and a 9.1% rise in Japan, fueled by demand for new models, particularly hybrids. However, sales in the United States fell by 4.4%, with a more significant drop of over 30% in the Middle East. Earlier this year, Toyota had projected that hybrid sales would reach 5 million units for the first time in 2026, leveraging its strong position in the U.S. market, where Chinese brands face substantial tariffs.