Toyota's November Sales Decline: Impact of China Becomes Apparent.

Analysis of Toyota Motor's November Sales

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

Reasons for the Decline in the Chinese Market

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

Performance in Japan and Overseas

Sales in Japan showed a 1.5% increase, reaching 177,130 units, indicating that domestic demand remains stable. However, sales outside Japan dropped by 2.6%, falling to 788,789 units. This suggests that overall overseas markets are facing pressure.

Market Size and Diversity

In North America, sales showed resilience with a 2.7% increase, while Europe saw a 5.3% decrease. Additionally, other regions in Asia experienced mid-single-digit declines. This evidence shows that the slowdown in November sales is not limited to China, although the largest decline originated from there.

Brand Performances

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

Production Figures

On the production side, total global production fell by 3.4%, decreasing to 934,001 units. This marks the first production decline in 2025. The decrease in production, which comes amid falling sales, indicates a more cautious production approach as demand normalizes. Total production of Toyota and Lexus dropped by 5.5% to 821,723 units, while Daihatsu’s production increased by 20.5%, reaching 103,250 units. Hino Motors’ production decreased by 24.8%, falling to 9,028 units.