Toyota Motor recorded declines in global sales and production during the first half of 2026, the first time both measures had fallen over the period in two years, as weaker demand in China and a model changeover for the RAV4 weighed on the results.
Worldwide sales between January and June fell 2.9% year on year to just over 5 million vehicles. Sales in China declined 17.1%, offsetting stronger demand in North America and Japan. The figures show that improved sales in those two markets were not sufficient to counter the reduction recorded in China during the six-month period.
Global vehicle production fell 1.2% from the same period a year earlier to under 4.9 million vehicles. The production decline accompanied the lower sales total, with the RAV4 model changeover identified as another factor affecting the first-half result. Toyota Motor’s figures include both sales and production for Lexus, its luxury brand.
The geographic split places China at the centre of Toyota Motor’s first-half sales decline. North America and Japan delivered stronger demand, but the 17.1% reduction in China outweighed those increases. The result demonstrates how performance in a major regional market can affect the company’s worldwide totals even when demand improves elsewhere.
Toyota’s weakness in China also sits against a mixed picture across other consumer and technology markets in the region. Finance Gazette has examined diverging Chinese luxury spending at L’Oréal, LVMH and Hermès as well as the SK Hynix and Samsung KOSPI AI-chip sell-off, illustrating how changes in Chinese demand and technology expectations can affect companies well beyond the automotive sector.
June moved in the opposite direction from the six-month totals. Global sales increased 0.1% to 868,454 vehicles during the month, while production rose 2.9% to 879,321 cars. Both measures therefore returned to year-on-year growth in June after the declines recorded across the full January-to-June period.
Semiconductor supply and electronics demand are also relevant to the wider manufacturing environment. Finance Gazette has separately covered expectations for a Samsung Electronics and SK Hynix chip shortage extending into 2028 and Qualcomm’s decline in handset revenue.
The June increases provide the latest monthly position within Toyota Motor’s reported figures, while the first-half totals continue to reflect the effect of weaker Chinese demand and the RAV4 model transition. The company’s subsequent global sales and production figures will show whether the monthly increases recorded in June continue beyond the first half.
The wider automotive sector continues to show substantial differences between companies and markets. Finance Gazette has examined the divergence between McLaren, CYVN Holdings and Jaguar Land Rover and the capital-return programme represented by Daimler Truck’s second buyback tranche
