Toyota's global sales and production declined together in the first half of 2026 for the first time in two years, as weakness in the Chinese market outweighed robust demand in North America and Japan.
Toyota's global sales in H1 2026 fell to just over 5 million vehicles year-on-year.
Global production dropped 1.2% to below 4.9 million vehicles in the same period, according to company figures that combine Toyota and Lexus brands. The downturn was driven by a 17.1% plunge in sales in China, where local automakers are gaining ground in electric and plug-in hybrid vehicles, intensifying price competition as consumers shift to domestic brands.
Toyota's best-selling model, the RAV4, underwent a model changeover during the first half, which temporarily reduced vehicle availability, particularly in North America. Factory adjustments during such transitions can lower production volumes. Despite this, strong sales in North America and Japan prevented a deeper overall slump.
June provided a brighter picture: global sales edged up 0.1% year-on-year to 868,454 vehicles, while production rose 2.9% to 879,321. These figures suggest the company may partially offset the first-half weakness, depending on demand trends in China and the normalization of RAV4 output. Analysts say Toyota's response to EV competition in China and its new-model launch schedule will be key to maintaining its position among the world's largest automakers.