Toyota’s Global Sales Keep Sliding, With a China Collapse It Blames On Gas Prices

Toyota’s global sales slipped 7.2 percent in May, marking a fourth consecutive monthly decline, as the automaker grappled with a sharp downturn in Asia—particularly China—where sales cratered nearly 32 percent. The drop dragged the company’s global tally to 834,729 vehicles, down from 849,306 in April and 897,871 in March. Including subsidiary Daihatsu, the total fell 7.4 percent to 885,207 units, with production also dipping 5.8 percent to 857,765 vehicles. The slump forced Toyota to slash its operating income forecast to 3 trillion yen ($18.8 billion) through March 2027, a downgrade from last year’s 3.8 trillion yen ($23.4 billion) and below prior expectations.

China was the epicenter of the pain, with sales collapsing 31.7 percent year-over-year to 102,299 units. Toyota pinned the blame on persistently high gasoline prices, describing the market as “challenging.” The damage extended beyond May, with cumulative sales in China down 15 percent through the first five months compared to last year. Other Asian markets also faltered: the Philippines fell 13.4 percent, Malaysia 18.2 percent, and Pakistan 24.7 percent. The Middle East, roiled by regional instability, saw sales plummet 38.6 percent to 29,568 units, with Toyota warning that up to half of its annual shipments to the region—500,000 to 600,000 vehicles—could be at risk.

Oceania wasn’t spared either, with sales down 26 percent to 21,061 units. North America and Europe showed resilience, with sales dipping just 0.1 percent and 0.3 percent respectively. In the U.S., sales slipped 0.6 percent to 238,800 units, while Europe recorded 99,597 units sold. Toyota attributed the U.S. slowdown partly to the transition to the next-generation RAV4, even as hybrid and EV demand continued to rise.

Japan bucked the trend entirely, with sales climbing 11.1 percent to 118,381 units, though this still lagged April’s 149,924. Despite the gloomy global picture, Toyota retains its title as the world’s largest car manufacturer, but the cracks are widening.