Slumps in China and Japan dent Toyota’s global sales

Toyota Motor’s global sales dropped 7% in February from a year earlier, hurt by a decline in China due to the Lunar New Year holidays and a slump in Japan after a safety test scandal at its small car unit.

Sales in China — the world’s biggest car market — tumbled 36%. In 2023 the weeklong Lunar New Year holiday took place in February while it occurred in January in 2024.

China’s car market is also engaged in a cut-throat price war and Toyota said fierce competitive was affecting sales.

For January and February combined, however, the sales decrease in China was a much milder 0.7%, though that was still less than a 6.4% rise in passenger vehicle sales sector-wide, according to data from an auto industry association.

While Toyota’s US sales for February surged 16% and those in Europe gained 14%, Japan sales tumbled by a third. Domestic sales were hit by production stoppages at Daihatsu, which also makes some Toyota brand cars, and due to the reputational fallout from the scandal, even though Daihatsu brand vehicles are not included in Toyota’s global sales count.

Almost a year ago the small-car unit said it had rigged collision safety tests.

Toyota’s sales in Indonesia and Thailand also saw double-digit decreases.

Almost two-fifths of the vehicles sold by the world’s largest carmaker in February were petrol-electric hybrids.

Global sales figures include Toyota brand cars and those sold under its luxury Lexus brand. Separate figures for Daihatsu showed its worldwide sales plunged 66% in February.

Toyota’s global output for February shrank by 2.6% to 737,178 vehicles.

Reuters