Toyota Motor Corp.’s global vehicle sales dropped 2.9% in September to 921,847 units, pulled down by a drop in China where higher gas prices are weighing on demand for non-electric vehicles, according to the company.
The China Slump and the EV Pressure
China, the global auto industry’s leading market, remains a stubborn hurdle for the world’s biggest carmaker. Toyota and Lexus brand sales within the country plunged 20% in September, marking an eighth month of regional declines. Legacy manufacturers across the board are struggling to retain market share against domestic Chinese brands rapidly churning out battery-powered cars equipped with the latest features and onboard software.
Honda Motor Co.’s global sales fell 6.5% to 271,402 units, driven by a 53% drop in China. Nissan Motor Co. suffered an even sharper retreat, reporting a 62% collapse in Chinese sales alongside a 10% decline globally.
Hybrid Resilience in Western Markets
While Asian operations faltered, strong appetite elsewhere cushioned the blow for Toyota. Sales edged up 1.8% in Japan and 8.6% in North America, propelled by a resurgent consumer interest in gas-electric hybrid vehicles. Toyota pioneered hybrid technology, and that early bet is paying dividends as drivers hesitate to commit fully to pure battery-electric alternatives.
Global production for the automaker fell 4.5% to 989,168 vehicles in September. In August, Toyota revised its profit outlook upward for the fiscal year ending in March 2027, targeting ¥3.4 trillion. That adjustment relied heavily on robust North American demand for hybrids and favorable currency movements, offsetting earlier concerns regarding rising raw material expenses.
