Toyota's November Sales Decline: The Impact of China is Significant

Toyota Motor's November Sales Analysis

Toyota Motor (TM) announced that its global vehicle sales decreased by 1.9% year-on-year, falling to 965,919 units as of November 2025. This marks the first annual sales decline for the company in the last 11 months.

Cause of the Decline in the Chinese Market

The biggest factor behind the slowdown in sales is undoubtedly the Chinese market. In the country, vehicle sales decreased by 12.1% year-on-year, totaling 154,465 units. Toyota attributes this decline to the end of incentive programs, uncertainty regarding new policies, and changes made to key models such as the RAV4.

Performance in Japan and Abroad

Sales in Japan increased by 1.5%, reaching 177,130 units, indicating stable domestic demand. However, sales outside of Japan fell by 2.6%, dropping to 788,789 units. This situation shows that there is overall pressure in international markets.

Market Size and Diversity

In North America, sales showed resilience with a 2.7% increase, while Europe recorded a 5.3% decline. Additionally, other regions in Asia also witnessed mid-single-digit declines. This proves that the sales slowdown in November was not limited to China, although the largest decline originated from there.

Brand Performances

Total sales of Toyota and Lexus decreased by 2.2%, falling to 900,011 units, while Daihatsu Motor saw an 8.3% increase, reaching 57,271 units. Hino Motors' sales, on the other hand, dropped by 20.8%, dwindling to 8,637 units.

Production Figures

On the production side, total global production decreased by 3.4%, dropping to 934,001 units. This is recorded as the first production decline in 2025. The reduction in production occurring amid declining sales indicates a more cautious production approach as demand normalizes. Total production of Toyota and Lexus fell by 5.5%, reaching 821,723 units, while Daihatsu's production increased by 20.5%, reaching 103,250 units. Hino Motors' production decreased by 24.8%, declining to 9,028 units.