Toyota Motor Global Sales Decline 7% in February

Toyota Motor’s global sales experienced a significant setback in February, dropping by 7% compared to last year. 

This decline was primarily attributed to several factors, including a sharp decrease in sales in China due to the Lunar New Year holidays and repercussions from a safety test scandal in Japan involving its small car unit.

China Market Plunge:

Sales in China, the largest auto market globally, plummeted by 36%, largely influenced by the timing of the Lunar New Year holiday, which occurred in February this year compared to January last year. 

Additionally, intense competition and a price war in China’s auto market further impacted Toyota’s sales performance in the region.

Mixed Regional Performance:

Despite the challenges in China, Toyota saw promising growth in other regions. U.S. sales surged by 16% in February, while Europe experienced a 14% increase. 

However, Japan faced a significant downturn, with sales dropping by a third, attributed to production stoppages at Daihatsu and the fallout from the safety test scandal.

Continued Challenges in Southeast Asia:

Toyota’s sales in Indonesia and Thailand also faced double-digit declines, reflecting ongoing challenges in Southeast Asia.

Notably, nearly two-fifths of Toyota’s global sales in February comprised gasoline-electric hybrids, showcasing the continued popularity of environmentally friendly vehicles. 

Despite the sales decline, Toyota’s global output for February only shrank by 2.6% to 737,178 vehicles, indicating efforts to maintain production levels amidst market challenges.

Impact on Daihatsu and Lexus Brands:

Global sales figures encompass both Toyota and its luxury brand, Lexus. 

However, Daihatsu, the small car unit embroiled in the safety test scandal, experienced a staggering 66% plunge in worldwide sales for February, further highlighting the incident’s repercussions on Toyota’s overall performance.