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

Toyota Motor reported on Tuesday that its global vehicle sales and production fell for a second consecutive month in August, as declines in China, the US, and the Middle East continued to impact its performance. The world's largest automaker saw a 6.4% drop in global sales, reaching 790,743 vehicles, and a 5.9% decline in production to 700,860 vehicles compared to the previous year.

The significant contributor to the sales decline was China, where a 22.8% plunge dragged down results for the seventh consecutive month. This was mainly due to higher petrol prices leading to reduced demand for hybrid and traditional combustion-engine vehicles. In contrast, Toyota's top market, the US, experienced a 4.4% decline in sales, while the Middle East saw a sharp 37.5% drop.

Production was also negatively affected, with an 11.3% decrease in China and a 6.6% reduction in the US. Output in Japan fell by 1.7%, partially due to production suspensions following an earthquake on the southern island of Kyushu. Toyota's sales figures include its luxury Lexus brand.