July 30, 2026 – Toyota Motor reported a weaker first half of 2026, with both global vehicle sales and production declining year over year for the first time in two years, highlighting mounting pressure in the world’s largest auto market despite resilient demand elsewhere.
According to figures released by the Japanese automaker on Thursday and cited by Reuters, Toyota sold just over 5 million vehicles worldwide during the January-June period, down 2.9% from a year earlier. Global production also slipped 1.2% to below 4.9 million units.
The company attributed the sales decline primarily to sluggish demand in China, combined with the model transition of its best-selling RAV4 SUV, which temporarily affected deliveries during the rollout of the latest generation.
China remained Toyota’s biggest challenge in the first six months of the year. Vehicle sales in the country plunged 17.1% compared with the same period in 2025, offsetting stronger performances in North America and the Japanese domestic market.
Toyota’s difficulties also reflect a broader trend facing Japanese automakers in China. As competition from local manufacturers continues to intensify, foreign brands collectively accounted for only 28.2% of the Chinese passenger vehicle market in the first half of 2026, while domestic automakers expanded their combined share to 71.8%. Among major overseas brands, Japanese manufacturers experienced some of the steepest declines in market share.
The latest figures underscore the growing competitive pressure from Chinese automakers, whose rapid advances in electrification, intelligent driving technologies, and aggressive pricing strategies have continued to reshape the country’s automotive landscape, making it increasingly difficult for traditional foreign brands to maintain their historical market positions.
