Toyota Posts First Global H1 Sales Decline in Two Years as China Slumps 17%

On July 30, Toyota Motor released its global production and sales results for the first half of 2026.

The company sold approximately 5.39 million vehicles worldwide in the first half, including Daihatsu models, down 2.8% year on year. Global production totaled about 5.51 million units, a decline of 0.3%.

The results marked Toyota’s first year-on-year decline in global first-half sales in two years.

Despite the drop, the company remained the world’s best-selling automaker for the first half for the seventh consecutive year.

In June alone, Toyota’s global sales fell 1.1% year on year to 926,000 vehicles, marking the fifth consecutive month of decline. Global production, however, rose 2.2% to 984,000 units.

Toyota said the transition to the new-generation RAV4, slowing demand in some markets and continued weakness in China were among the key factors affecting its overall performance.

By region, Japan remained a growth market, while overseas markets were the primary drag on overall sales.

First-half sales in Japan rose 4.4% year on year to 1.09 million vehicles, while sales outside Japan declined 4.5% to 4.29 million units.

China was the biggest source of weakness. Toyota sold 694,700 vehicles in China during the first half, down 17.1% year on year, offsetting growth in Japan and North America.

The trend continued in June, when Toyota’s sales in China fell 27% year on year to 115,000 vehicles.

Toyota said China’s market is undergoing rapid changes amid intensifying competition from domestic new energy vehicle manufacturers led by BYD.

The trend was also reflected in Toyota’s two Chinese joint ventures.

According to data from CPCA, FAW Toyota sold 273,700 vehicles in the first half, down 27.4% year on year, while GAC Toyota sold 341,100 units, a decline of 6.3%.

However, GAC Toyota’s electrified vehicle lineup has begun contributing incremental sales growth.

Its bZ series recorded cumulative first-half sales of 52,202 units, with the bZ3X accounting for around 41,500 units and emerging as a key volume driver for the brand.

Official retail sales data for the first half of 2026 shows Japanese brands relying heavily on gasoline vehicles faced overall headwinds in China.

Nissan’s sales in China fell 15% year on year to 237,000 vehicles, while Honda’s declined 34.7% to 205,800 units.

All three major Japanese automakers posted double-digit sales declines in the Chinese market.