TOYOTA Motor’s sales in Japan and China are struggling to shake off a series of challenges, including rising competition from electric vehicle (EV) brands, domestic scandals and recalls abroad, despite strong demand for hybrid vehicles in North America.
Global production – including that of subsidiaries Daihatsu Motor and Hino Motors – fell in September by 8.5 per cent from the previous year to 949,583 units, the company said on Wednesday (Oct 30). Sales in the same month fell 8 per cent to 923,311 units.
Toyota’s sales in Japan shrank nearly 17 per cent this year between January and September, largely due to domestic recalls of the carmaker’s Prius hybrid vehicle that lasted more than two months, along with the delayed effects of various scandals involving falsified vehicle safety certifications.
Output in China fell almost 18 per cent during the same period thanks to intense competition from BYD and other local brands.
The world’s top carmaker continues to lose ground in the biggest passenger-car market, where domestic firms dominate in a field saturated by battery EVs.
Toyota’s exports fell 34.9 per cent in China, and 34.3 per cent in the US, though they have risen globally by 10.1 per cent throughout the calendar year so far.
European Union and US tariffs on imported Chinese EVs and new European emission regulations threaten to change the playing field. But its not clear yet who will emerge as the greatest beneficiary. BLOOMBERG
