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Toyota Sales Slump for Seventh Month Amid China Slowdown and EV Competition
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Moneycontrol•29-09-2026, 11:12
Toyota Sales Slump for Seventh Month Amid China Slowdown and EV Competition
- •Toyota Motor Corp.'s car sales fell for the seventh consecutive month, primarily due to a prolonged slump in China.
- •Toyota and Lexus brand sales in China plummeted 23% in August, impacted by weak demand for gasoline and hybrid vehicles and intense competition from local EV makers.
- •Global group deliveries declined 7.5% year-over-year, as the Chinese market faces challenges from a real estate crisis, uneven EV demand, and soaring oil prices.
- •Despite the overall decline, Toyota and Lexus sales saw increases of 2.6% in Europe and 9.1% in Japan, driven by strong demand for new models, especially hybrids.
- •Toyota anticipates hybrid sales to exceed 5 million units for the first time in 2026, leveraging alternative powertrains in markets like the US where tariffs limit Chinese EV brands.
Key Questions Answered
Toyota car sales dropped due to a prolonged slump in China, where legacy brands face intense competition from fast-moving local electric-vehicle manufacturers. Weak demand for gasoline and hybrid vehicles in China caused a 23% sales crash for Toyota and Lexus, dragging down global group deliveries by 7.5%.
Toyota and Lexus sales rose by 2.6% in Europe and 9.1% in Japan, supported by robust demand for new models, particularly hybrids.
Toyota announced earlier this year that its hybrid sales are on track to exceed 5 million units for the first time in 2026. Alternative powertrains have provided a strong arsenal for the carmaker in the United States, where steep tariffs have largely blocked Chinese brands like BYD.
