Toyota Reports Strong October on Hybrid Demand Despite Weakness in China, Japan

Toyota Motor Corp (TYO:7203) continued its steady momentum in October, marking its fifth straight month of production growth as global demand for fuel-efficient vehicles—especially hybrids—remained robust. The world’s largest automaker said global production rose nearly 4% to 926,987 units for the month, while worldwide sales increased 2% to 922,087 vehicles.

Toyota’s performance in the United States stood out as a major driver of its October gains. U.S. sales jumped 11.8% to 207,910 vehicles, supported by surging demand for Toyota’s expanding lineup of hybrid models. Production in the U.S. also recorded a strong increase, rising 26.4% to 137,262 units. The automaker continues to benefit from consumers who are prioritizing affordability and fuel efficiency over fully electric vehicles, a trend that has boosted Toyota’s hybrid leadership.

However, performance in Toyota’s home market of Japan was more mixed. Sales slipped 4.2% to 137,506 units despite a 6.8% rise in domestic production. China, another key market, also weighed on Toyota’s results, with sales falling 6.6% and production down 6.4%. The decline in China was partly attributed to the end of government subsidy programs and the growing competitive pressure from local electric vehicle manufacturers.

Despite softer demand in Asia, Toyota still entered the December quarter on solid footing. Continued strength in the U.S. auto market has helped offset regional challenges, even as broader economic uncertainty persists. The company’s hybrid strategy remains central to its growth, appealing to cost-conscious buyers who see hybrids as a practical alternative to EVs.

With October’s results included, Toyota’s year-to-date sales have now reached 8.7 million vehicles, up 4.5% from the same period last year. Sales in Japan are also up 4.5% so far this year, underscoring resilient long-term demand despite recent monthly fluctuations.