Group sales totaled 5.39 million vehicles in January-June, topping Volkswagen and Hyundai, while China and Middle East weakness offset stronger demand in Japan and North America.
Toyota Motor said its global group sales for January-June 2026 fell 2.8% from a year earlier to 5,390,484 vehicles, but the automaker still remained the world's top-selling carmaker for the seventh straight half-year, ahead of Volkswagen at about 4.13 million units and Hyundai Motor at roughly 3.58 million. The first-half decline was Toyota's first year-on-year drop for the period in two years. China was the biggest source of weakness, with combined Toyota and Lexus sales there falling 17.1% to 690,000 units as higher gasoline prices tied to escalating Middle East tensions hurt consumer demand. Sales in the Middle East also fell 21.6% to 210,000 units, while exports from Japan to the region dropped 36.0% to 104,093 units amid Red Sea logistics disruptions. Domestic demand in Japan was more resilient, with group sales rising 4.4% to 1,095,237 units, helped by the launch of the new bZ4X electric vehicle. By brand, combined Toyota and Lexus sales fell 2.9% to 5,008,898 units, while Daihatsu Motor sales rose 7.4% to 353,700 units. Hino Motors was removed from the group in April, leaving only 27,886 units from January-March included in the tally. Global production was nearly flat, slipping 0.3% to 5,511,179 units. Toyota's electrification push gathered pace, with Toyota-brand global electrified vehicle sales rising 9.1% to a first-half record 2,707,302 units. Hybrid sales increased 4.4% to 2.33 million units, EV sales jumped about 2.4-fold to 193,172 units, and electrified vehicles, including plug-in hybrids, accounted for 54% of Toyota-brand sales for the first time in a half-year period. Attention is now turning to the automaker's earnings outlook and supply risks. Toyota forecast for the fiscal year ending March 2027 calls for operating revenue of 51 trillion yen, up 0.6%, but operating profit of 3 trillion yen, down 20.3%, and net profit of 3 trillion yen, down 22.0%, as U.S. tariff policy, currency moves, investment spending and labor costs weigh on margins. Investors are also watching possible supply-chain effects from the earthquake in Japan's Kumamoto Prefecture ahead of first-quarter results due on Aug. 4.