Toyota Loses One-Third of Sales in China, 38% in Middle East as Global Decline Continues for Fourth Month

Toyota Motor Corporation has reported a 7.2% year-on-year decline in global sales for May, marking the fourth consecutive month of declining sales for the Japanese automaker. The drop was primarily driven by weak performance in key overseas markets, particularly China and the Middle East, where the brand experienced significant double-digit losses that weighed heavily on its overall results.

Toyota Global Sales in May

Toyota brand sales, including Lexus, reached approximately 834,279 vehicles in May, down from higher levels in the same month last year. Overseas sales fell by 9.6%, totaling around 715,898 units. In contrast, Toyota posted stronger results in its home market, with domestic sales rising 11.1%, boosted by strong demand for models such as the RAV4 and the bZ4X electric vehicle. This domestic growth, however, was not enough to offset the broader international downturn.

China and Middle East Lead the Decline

China was the hardest-hit market, with Toyota sales plummeting 31.7% amid challenging market conditions and intense competition in the world's largest auto market. The Middle East region also saw a sharp 38.6% decline in sales, while the United States, Toyota's largest single market, recorded a relatively modest 0.6% drop. These figures highlight that the most severe pressure on Toyota's performance is coming from Asia and the Middle East rather than North America.

Global Production Also Falls

The slowdown was not limited to sales alone, as global production for the Toyota brand dropped 5.5% in May, driven by reduced output in overseas markets, particularly Asia and the United States, despite improved production levels in Japan. For the entire Toyota Motor group, total global sales reached 885,207 vehicles in May, a 7.4% year-on-year decline. The production figures underscore the broader operational challenges facing the company as it navigates shifting demand patterns.

Year-to-Date Performance

Over the first five months of 2026, Toyota Motor group sales fell 3.1% to approximately 4.46 million vehicles. The company recorded a 3.7% increase in domestic sales during the same period, while overseas sales dropped 4.7%, reflecting continued pressure on the company's performance outside its home market. This ongoing decline comes at a time when global automakers face intensifying competition, especially in markets where electric and hybrid vehicles are rapidly gaining ground, forcing traditional players like Toyota to adapt quickly to changing consumer preferences.