June 03, 2024 – Amidst intensifying competitive pressures, Toyota, the world’s leading automotive manufacturer, is facing a significant downturn in its vehicle sales. Recent data reveals that in April, the company’s global production slipped to 756,254 units, marking a 4% year-on-year decline. Simultaneously, global sales also edged down to 797,097 units, maintaining a three-month streak of underperforming compared to the same period last year.
Of note, overseas production saw a 2% drop to 504,769 units. Regionally, China, a fiercely competitive market, experienced a 25% reduction in production, while South America and Central America witnessed a 24% decrease.
Despite this, Toyota’s sales in China have taken a particularly sharp downturn, plummeting by 27%. This significant drop is attributed to the intense price wars among local manufacturers and the growing preference for new energy vehicles among Chinese consumers.
Moreover, Japanese automakers, including Toyota, are struggling in the Chinese market. In April, the market share of Japanese passenger vehicles in China fell to 15.2%, hitting a new low since 2013. Concurrently, Chinese domestic brands are rapidly gaining market share, edging closer to their target of capturing seven out of ten sales.
Industry analysts attribute the decline in Japanese automakers’ market share primarily to their laggardness in the field of new energy vehicles. As the Chinese automotive market shifts towards new energy, traditional gasoline-powered and hybrid vehicles relied on by Japanese brands are gradually losing their market appeal.
Given the current trend, some bloggers have predicted that a collapse of Japanese vehicles is imminent. However, the long-term outlook remains uncertain, and it remains to be seen whether these automakers can adapt and innovate to regain their footing in the evolving automotive landscape.
