Toyota, the world's largest automaker, recorded its sixth consecutive month of decline in global sales. In July, the company sold 912,683 vehicles, which includes its subsidiary Daihatsu, representing a 5.3% reduction compared to the same period in 2025. Concurrently, production fell by 1.4%, totaling 934,953 units. This data was released by the company itself and compiled by Bloomberg.
The main factor behind this contraction comes from China. Toyota and Lexus sales dropped by 24.3% in the Chinese market, marking the sixth consecutive month of decline. This performance was hampered by competition from local manufacturers, who are flooding the market with competitively priced electric vehicles equipped with software. Interestingly, the increase in fuel costs did not help hybrids in China; according to Toyota itself, the rise in gasoline prices decreased demand for both combustion engine cars and hybrid models in that market.
The region that felt the negative impact most was the Middle East, which showed a sharp drop of 44.5%. The conflict involving the United States, Saudi Arabia, and Iran caused disorganization in shipping routes and raised oil prices. A relevant piece of data illustrating the loss is that Toyota exports between 500,000 and 600,000 vehicles annually to this area, and estimates that less than half of this volume will be affected by logistical disruptions.
In the United States, the company's largest market, the drop was modest, reaching only 0.8%. In contrast, Japan saw an 11% growth, with Toyota selling 150,097 units, driven by new models such as the RAV4, bZ4X, and Land Cruiser FJ. In the accumulated period from January to July, the group reached 6,275,281 vehicles, representing a 2.6% decrease compared to the same period in 2025.
A positive point lies in electrification. In the first seven months of the year, Toyota and Lexus sold 3,180,993 electrified vehicles, an increase of nearly 10% and corresponding to over 54% of the total delivered by the company. Traditional hybrids contributed 2,731,214 units, an advance of 5.1%, while fully electric vehicles totaled 230,163, a notable jump of 130%.
Takanori Azuma, Chief Accounting Officer, projected that the company will end 2026 by selling more than 5 million hybrids worldwide, setting a record. To meet growing demand, the manufacturer is preparing a new generation of batteries and adapting production lines in Japan with capacity for approximately 600,000 annual vehicles.
Japanese competitors face similar, though not identical, scenarios. Nissan recorded sales of 219,495 vehicles in July, which constitutes a 16.5% drop, accompanied by 16% lower production. On the other hand, Honda achieved a 3.4% increase in its global sales, totaling 289,142 units, benefiting from a 13% growth in the United States, despite failing to avoid a 44% drop in China or a 3.3% decline in global production.