Toyota Loses Ground in China as First-Half Sales Plunge 25%

【Financial News, Tokyo—Correspondent Seo Hyejin】Toyota Motor Corporation’s sales in China from April to September this year plunged 25% from a year earlier. Demand for gasoline and hybrid vehicles (HVs) fell amid high fuel prices, while competition also intensified in the electric vehicle market. Toyota plans to counter by producing next-generation EVs and range-extended electric vehicles in China.
According to the Nihon Keizai Shimbun on the 29th, Toyota’s sales in China from April to September this year, including Lexus, totaled 684,903 vehicles, down 25% from the same period a year earlier. Monthly sales have been below year-earlier levels since February.
In China, rising gasoline prices dampened demand not only for gasoline-powered cars but also for hybrids. Competition for sales has also intensified as the adoption of new-energy vehicles, including EVs, has expanded.
Toyota is seeking a breakthrough by expanding its EV lineup. Next year, it will produce next-generation EVs with extended driving ranges in China under the Lexus brand. It also plans to produce locally range-extended electric vehicles (EREVs), equipped with engines that generate electricity to charge the battery.
The weakness in the Chinese market also affected Toyota’s global sales. From April to September, the company sold 5,059,014 vehicles worldwide, down 4% from the same period a year earlier.
However, demand for hybrids remained strong in North America, a key market. The Toyota RAV4 SUV and Toyota Camry sedan, among others, led sales. In Japan, demand that had delayed registrations while waiting for the environmental performance tax—a tax levied when a vehicle is acquired—to be abolished at the end of March came rushing in. Sales of the bZ4X electric vehicle and Land Cruiser FJ SUV also increased.
Sales in Europe rose 1% to 594,913 vehicles. Reports that the EU and China agreed in mid-October to halve imports of hybrid and plug-in hybrid vehicles (PHEVs) have also raised the possibility that Japanese automakers, which have an edge in hybrids, could benefit.
Exports of vehicles from Japan to the Middle East fell 26% to 113,794. Exports dropped sharply after fighting between the United States and Iran began in February, but have recently shown signs of recovery.
Over the same period, Toyota’s global production fell 2% to 4,895,406 vehicles. A decline in production in China pulled down the overall figure. Production in Japan rose 6% to 1,680,054 vehicles, while production in the United States fell 3% to 694,836.

[email protected] Seo Hyejin Reporter