Toyota First-Half Global Sales Fall for First Time in Two Years on China Weakness

Toyota Motor Corp.'s global sales for the first half of 2026 fell for the first time in two years, weighed down by persistent weakness in the Chinese market that overshadowed strong demand in Japan and North America. A marginal year-on-year sales increase in June was not enough to reverse the broader downward trend, according to data released by the company on Thursday.

June Sales Show Mixed Picture

For the month of June, the world's largest automaker reported a 0.1% year-on-year increase in worldwide sales of Toyota and Lexus vehicles, reaching a total of 868,454 units. This marked the first monthly sales gain for the company in five months.

The slight uptick was driven by a robust performance in its home market, where sales in Japan climbed 17.2% to 148,862 vehicles. In contrast, overseas sales fell 2.9% to 719,592 vehicles, their fifth consecutive monthly decline. While Toyota noted higher sales of hybrid models in North America, this strength was offset by what the company described as a challenging environment in China.

First-Half Results Weighed by China

The cumulative results for the first six months of the year highlight the impact of regional headwinds. Key figures for the first half of 2026 include:

Ad

• Global Sales: Fell 2.9% to 5.01 million vehicles.
• Global Production: Slipped 1.2% to 4.86 million vehicles.

Both metrics recorded their first first-half decline in two years. The results indicate that while demand for models like the RAV4 and Camry remains firm in markets like Japan and North America, it has not been sufficient to counter the slowdown in China.

Production Ramps Up in June

On the supply side, Toyota's global production rose 2.9% year-on-year in June to 879,321 vehicles, the first increase in two months. For investors, this monthly production increase could signal an easing of prior constraints, though the overall first-half decline suggests the company is still navigating a complex global manufacturing and sales landscape.