Toyota global sales fall 4% in first half as China plunges 25%

Toyota's global sales in the first half of its current fiscal year (April–September) fell for the first time in two years, dragged down by weak performance in China and the Middle East. Hybrid and battery electric vehicle sales, however, hit all-time highs, sustaining the Japanese automaker's growth in the eco-friendly vehicle segment.

Global sales for the first half of fiscal year 2026 totaled about 5.06 million units, down 4.0 percent from the same period a year earlier, according to the Yomiuri Shimbun on Thursday. The figure combines Toyota and Lexus brand sales and marks the first year-on-year decline in first-half global sales in two years.

The overall drop was driven largely by weakness in China and the Middle East. Sales in China plunged 25.1 percent year on year to 684,903 units, as surging gasoline prices triggered by deteriorating conditions in the Middle East slowed demand for both hybrid and conventional gasoline vehicles.

Sales in the Middle East also fell sharply, dropping 35.1 percent to 187,802 units.

In contrast, North America, Europe and Japan all maintained growth.

North American sales rose 1.8 percent to about 1.54 million units, buoyed by strong hybrid demand. European sales climbed 1.4 percent to 594,913 units.

Domestic sales in Japan surged 12.4 percent to 802,798 units, posting double-digit growth.

Even as overall sales declined, eco-friendly vehicle sales reached record levels.

Hybrid vehicle sales worldwide rose 8.4 percent to about 2.37 million units in the first half, while battery electric vehicle sales reached 230,764 units — roughly 2.2 times the level of the same period last year. Both categories set first-half records for the fiscal year.

Meanwhile, the broader Toyota Group, including Daihatsu Motor, posted first-half global sales of about 5.38 million units, down 4.6 percent year on year — also the first decline in two years.