## Toyota’s Global Sales Stumble for Fourth Consecutive Month
Japanese automotive giant Toyota Motor (TM) reported a 7.4% decline in global sales for September, marking the fourth consecutive month of falling sales. The company sold 853,149 Toyota and Lexus brand vehicles worldwide, a significant drop from September 2023.
The dip in global sales can be attributed to a confluence of factors affecting key markets. In Japan, sales plummeted 6.3% year-on-year to 135,179 units due to production disruptions caused by Typhoon No. 10, which hit the country in late August.
The U.S. market saw a more substantial decline of 20.3%, largely attributed to the impact of the recall of the Lexus TX and Toyota Grand Highlander in June, as well as the lingering effects of Hurricane Idalia in September.
China, a key market for Toyota, also experienced a sales drop of 9.2% to 160,457 units. The company attributed this decline to “continued severe market conditions,” including an intensifying price war amongst automakers.
The production side mirrored the sales trend, with a global production decrease of 8.3% to 826,556 units in September. This marked the eighth consecutive month of production decline. Japan and China bore the brunt of the production slowdown, with production falling 10.6% and 18.8%, respectively.
Despite the overall sales decline, Toyota’s commitment to electrification remains strong. The company sold 403,221 electrified Toyota and Lexus vehicles globally in September, marking a 16% jump from the same period last year. This category includes hybrids, plug-in hybrids, battery electric vehicles (BEVs), mild hybrids, and fuel-cell electric vehicles. However, pure BEVs accounted for only 2.8% of Toyota’s overall electrified vehicle sales last month, indicating a continued reliance on hybrid technology.
Toyota faces a challenging landscape with continued production disruptions, intense market competition, and the ongoing transition to electric vehicles. The company’s ability to navigate these challenges and maintain its global sales leadership will be closely watched in the coming months.
