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.
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.
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.
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.
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.
Tony Boyce is a seasoned journalist and editor at Sharks Magazine, where his expertise in business and startups journalism shines through his compelling storytelling and in-depth analysis. With 12 years of experience navigating the intricate world of entrepreneurship and business news, Tony has become a trusted voice for readers seeking insights into the latest trends, strategies, and success stories.