Korean Media: Toyota's Global Sales Dropped 7% in May, Slumped 32% in China!
On July 27, South Korean media outlet Etoday published an article stating that Toyota Motor Corporation experienced a decline in global sales in May, primarily due to weak performance in the Chinese and Middle Eastern markets. In China, soaring fuel costs and intensified competition with domestic automakers contributed to the drop in sales; meanwhile, in the Middle East, disruptions in logistics through the Strait of Hormuz and slowing demand also weighed on sales figures.
According to Nikkei News, Toyota’s global sales (including Lexus) in May declined by 7% year-on-year to 834,279 units.
The Chinese market was hit the hardest. Sales in China plummeted by 32% to just 102,299 units. This was mainly driven by rising international oil prices caused by worsening regional tensions in the Middle East, leading to higher gasoline prices and reduced demand for internal combustion engine vehicles, compounded by aggressive moves from local Chinese automakers. Although Toyota has launched low-cost electric vehicles such as the “bZ3X” and sedan “bZ7” in an attempt to capture market share, its sales in China have remained below last year’s levels since February.
Due to the blockade of the Strait of Hormuz and sluggish consumer demand, sales in the Middle East also dropped sharply by 39% to 29,568 units. As a result of disrupted logistics, Japan’s auto exports to the Middle East fell by 66% to just 7,323 units.
Considering declining demand in the Middle East and other factors, Toyota plans to cut overseas production by approximately 100,000 units before February next year. The company expects that, starting in April next year during the fiscal year 2027, profits will decrease by 6.7 billion yen due to production cuts triggered by ongoing Middle East instability and rising raw material costs.
By region, overseas sales declined by 10% to 715,898 units. In contrast, sales in North America remained nearly flat compared to last year at 280,539 units—largely driven by strong sales of hybrid vehicles. In Japan, new SUVs like the “RAV4” and electric vehicle “bZ4X” performed well.
The transition toward electrification is progressing steadily. Sales of electric vehicles—including hybrids and pure EVs—grew by 10% to 467,584 units, accounting for 56% of total sales.
Meanwhile, global production decreased by 5% to 765,470 units. Production in North America, Europe, and China fell by 4%, 18%, and 23% respectively, while Japan saw a 4% increase in output, benefiting from robust domestic sales.
Original source: toutiao.com/article/1871834505315399/
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