30/09/2026
Toyota just marked its seventh consecutive month of falling global sales. The culprit isn't a secret: China's car buyers are abandoning traditional engines faster than legacy automakers can keep up. Global deliveries for Toyota and Lexus slid 7.5% year-on-year to 823,618 vehicles. It is a stark reminder of how quickly the ground is shifting under the automotive giant's feet. As Chinese domestic brands flood the market with cheap, tech-heavy electric vehicles, foreign giants are losing their grip.
As reported by The Japan Times, the damage was heaviest in China itself. Sales there collapsed by 23%. Local buyers, feeling the pinch of a sluggish real estate market, are increasingly cost-conscious. Rising gas prices have soured them on traditional combustion engines, driving a massive migration toward pure EVs and plug-in hybrids. Toyota simply doesn't have the electric lineup ready to fight back on that turf yet. In fact, Toyota is actually weathering the storm better than its closest domestic rivals. Honda’s sales in China recently plummeted by nearly half, while Nissan watched its deliveries cut in more than half over the same period. They are pivoting to a "China-for-China" model—essentially tearing up the old playbook to design cars locally using Chinese tech suppliers who actually understand what the local market wants.
Fortunately for Toyota, the rest of the world is keeping them afloat. Home-market sales in Japan jumped 9.1% thanks to a wave of fresh models, and Europe chipped in with a modest 2.6% gain. There were still pockets of trouble elsewhere—U.S. sales dipped 4.4% and the Middle East cratered by 37.5%—but the broader picture isn't entirely bleak. Demand for Toyota's traditional hybrids remains fierce. The company still expects to clear 5 million hybrid sales globally for the first time, buying them precious time to figure out their next electric move.