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Toyota Motor reported its first decline in global first-half vehicle production and sales in two years, highlighting ongoing challenges in the Chinese market and the impact of a model transition for its best-selling RAV4 SUV. The Japanese automaker faced softer consumer demand in China, which offset stronger performances in North America and its domestic market.
Between January and June, Toyota’s global vehicle sales fell 2.9% year over year to just over 5 million units. The decline was largely driven by a sharp 17.1% drop in sales in China, where intense competition and changing consumer preferences continue to pressure foreign automakers. Despite the weakness in China, demand remained resilient in North America and Japan, helping to cushion the overall decline.
Global vehicle production also slipped during the first six months of the year, falling 1.2% from a year earlier to just under 4.9 million units. Production was affected by the transition to the latest version of the RAV4, one of Toyota’s most important sport utility vehicles and a key contributor to its worldwide sales.
While the first-half figures reflected softer overall performance, Toyota showed signs of stabilization in June. Global sales increased 0.1% year over year to 868,454 vehicles, indicating relatively steady demand across major markets. Vehicle production also improved during the month, rising 2.9% to 879,321 units as manufacturing activity recovered.
The reported figures include both Toyota-branded vehicles and models sold under its luxury Lexus division, providing a comprehensive view of the company’s global operations.
Investors will continue monitoring Toyota’s performance in China, where competitive pricing and the rapid adoption of electric vehicles remain significant challenges. At the same time, stronger demand in North America and Japan, combined with improving production levels following the RAV4 model changeover, could support the automaker’s performance in the second half of the year.
