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Toyota Motor’s global vehicle sales fell 2.2% year-on-year to 860,107 units in September, while production declined 3.2% to 889,079 vehicles. Weak demand in China and the West Asia weighed on performance, offsetting growth in the US and Japan.
Toyota Motor, the world’s largest automaker, reported a third consecutive monthly decline in global vehicle sales and production in September, as a prolonged slump in China and weaker demand in West Asia offset growth in key markets such as Japan and the United States.
According to data released by the Japanese automaker on Thursday, global vehicle sales fell 2.2 per cent year-on-year to 860,107 units in September. Worldwide production declined at a faster pace, dropping 3.2 per cent to 889,079 vehicles over the same period.
The figures include Toyota’s luxury vehicle brand, Lexus, and highlight the challenges facing the automaker as demand conditions diverge across major markets.
China remains a key pressure point
China continued to be a significant drag on Toyota’s global performance. Sales in the world’s largest automotive market fell 19.7 per cent year-on-year in September, extending the decline to an eighth consecutive month.
Toyota attributed the weakness partly to higher petrol prices, which weighed on demand for petrol-powered and hybrid vehicles. The sustained downturn underscores the competitive pressures facing foreign automakers in China, where changing consumer preferences and pricing dynamics have made the market increasingly challenging.
More from BusinessProduction in China also contracted sharply, falling 18.6 per cent year-on-year in September. The decline in both sales and output points to continued weakness in Toyota’s business in the country.
The Middle East was another major source of weakness. Toyota’s regional sales plunged 29.8 per cent during the month, contributing to the overall decline in global deliveries.
US and Japan offer some support
Performance in Toyota’s other major markets was more resilient. Sales in the United States, the company’s largest market, rose 8.4 per cent year-on-year in September. However, US production declined 2.9 per cent, indicating that manufacturing output did not move in line with sales growth.
In Japan, Toyota’s domestic sales increased 1.8 per cent, while production rose 5.8 per cent over the same period.
The contrasting trends across markets highlight the uneven nature of demand in the global automotive industry, with regional conditions playing a significant role in shaping manufacturers’ sales and production strategies.
What the September numbers indicate
The third consecutive monthly decline in both sales and production highlights the pressure on Toyota’s global operations, particularly from its exposure to markets experiencing sustained weakness.
China’s eight-month sales decline is a notable concern, given the importance of the market to global automakers. Meanwhile, the sharp fall in Middle East sales adds to the pressure on Toyota’s international performance.
Although growth in the US and Japan provided some support, it was insufficient to offset declines elsewhere.
Toyota’s September figures offer a snapshot of the challenges confronting the global auto industry, as manufacturers navigate uneven regional demand, changing consumer preferences and intensifying competition in major markets.
The data also underline the importance of developments in China and the Middle East in determining whether Toyota can reverse the recent decline in its global sales and production.
