Toyota sales in China plunge 22.8% as global output slides for second month

oyota reported a decline in both global sales and production for August, marking the second consecutive month of contraction. Total global sales fell 6.4% year-on-year to 790,743 units, while production dropped 5.9% to 700,860 vehicles, according to Reuters.

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Логотип Toyota

China and Middle East Drag Down Results

The downturn is most severe in China, where sales plummeted 22.8%. This marks the seventh consecutive month of decline for the Japanese automaker in the Chinese market. Rising fuel prices are cited as a primary factor depressing demand for internal combustion engine (ICE) and hybrid vehicles.

Other key regions also showed negative growth:

• Middle East: Sales dropped 37.5%.
• USA: Sales fell 4.4%.

Growth in Toyota's home market of Japan (+9.1%) was insufficient to offset the losses in these major export regions.

Production Cutbacks

Manufacturing output mirrored the sales slump. Production in China fell by 11.3%, and US output decreased by 6.6%.

Japanese plants saw a 1.7% dip in production. This decline was partially caused by facility shutdowns following an earthquake on the southern island of Kyushu.

The reported figures encompass both the Toyota and Lexus brands. To counter the trend, the company has recently shifted focus toward the development of extended-range electric vehicles (EREV).