Toyota Reports Global Sales Drop in February Amid Intense Competition And Production Slump

Toyota Motor Corporation TM said its worldwide sales, including Lexus, fell 6.9% in February.

The decrease indicates the first year-over-year decrease in thirteen months. 

Worldwide production slumped 2.6% year over year in February.

The monthly sales were hurt by a sharp decline in China due to the Lunar Year holidays and a recession in Japan after a safety test scandal at its small car unit, Reuters noted.

Toyota noted that its sales were impacted by intense competition amid a fierce price battle in China’s automotive market, it added.

In contrast, the sales dip in China for January and February combined was relatively modest at 0.7%, contrasting with a 6.4% increase in passenger vehicle sales across the sector, Reuters stated, citing data from an automotive industry association.

Toyota experienced a 16% surge in U.S. sales and a 14% increase in Europe in February. 

However, sales in Japan plummeted by a third due to production halts at Daihatsu, impacting Toyota’s domestic sales despite Daihatsu cars not being included in Toyota’s global sales count, Reuters added.

Toyota was recently in the headlines for revealing its plans to commence mass production of an electric Hilux pickup truck by the end of 2025, as affirmed by Noriaki Yamashita, the president of Toyota Thailand.

The move follows Isuzu Motors, Ltd. ISUZY recent declaration to manufacture its battery-powered D-MAX pickup in Thailand by 2025.

Thailand, recognized as a pivotal automaking hub, sees the production of various vehicles, notably pickup trucks, for both domestic consumption and international markets.

Price Action: TM shares are trading lower by 0.08% to $251.95 on the last check Thursday. 

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