The Zhitong Finance App learned that sales of Toyota Motor Corporation (TM.US) declined in September, mainly due to continued sluggish sales in China. Toyota issued a statement on Thursday saying that global sales, including its subsidiary Daihatsu Motor, fell 2.9% year on year to 921,847 units; production fell 4.5% to 989,168 units.
The world's largest car company is facing challenges in the Chinese market. Strong demand for new models and hybrid models has enabled Toyota to maintain and even increase sales in the Japanese, European, and American markets. However, Toyota's sales in China have been declining for eight consecutive months, exacerbating the downward trend in overall sales.
Traditional car manufacturers have been struggling to cope with competition from Chinese brands. Chinese brands continue to launch electric vehicles to meet the needs of customers looking for the latest features and on-board software.
In September, sales of Toyota and Lexus brands fell 20% in China. Sales increased slightly by 1.8% in the Japanese market and 8.6% in the North American market, largely due to a resurgence in the popularity of oil-electric hybrid models — a technology pioneered by this Japanese car company.
In August of this year, Toyota raised its profit forecast for the fiscal year ending March 2027 to 3.4 trillion yen. This adjustment was buffered by demand for hybrid models in the US market and favorable exchange rates. Previously, due to the Middle East conflict driving up raw material costs, the company had anticipated a rare decline in profits this fiscal year.
Toyota also said that sales of hybrid models are expected to exceed 5 million units for the first time in 2026.