Inframe News – Toyota Motor reported a decline in global vehicle sales and production for July 2026, with weaker performance in several major overseas markets. Global sales of Toyota and Lexus vehicles fell 4.8% year on year to 856,125 units. Global production also dropped 2.1% to 828,629 vehicles.
China was one of the biggest factors behind the decline, with Toyota sales in the market falling 24.3% from a year earlier. The drop marked the sixth consecutive month of lower sales in China. Higher gasoline prices were cited as one factor affecting demand for both hybrid and conventional vehicles.
Toyota’s performance in the United States was also slightly weaker in July. Sales in its largest market slipped 0.8% compared with the same month last year. The decline was much smaller than the drop recorded in China and the Middle East.
The Middle East recorded an even sharper decline during the month. Toyota sales in the region fell 44.5% year on year, adding further pressure to the automaker’s overseas results. The region has also been affected by continuing geopolitical disruptions and changes in oil and fuel markets.
Japan provided a stronger result for Toyota in July. Domestic sales increased 11% to 150,097 vehicles, supported by demand for newer models including the RAV4, bZ4X and Land Cruiser FJ. Japanese production also increased 12.4% to 328,157 vehicles during the month.
Outside Japan, however, Toyota’s sales fell 7.6% to 706,028 vehicles. Production outside the country dropped 9.8% to 500,472 units, with China accounting for a major portion of the production decline. Toyota’s China production fell 32.7% compared with July 2025.
Toyota’s European business performed better than several other overseas markets. Sales in Europe increased 3.5% in July to 97,229 vehicles, while North American sales were broadly stable. The company’s hybrid vehicles continued to attract buyers in markets where demand for fuel-efficient models has remained relatively strong.
Exports from Japan also moved higher during July. Toyota exported more than 196,000 vehicles from Japan, an increase of 10.2% compared with the previous year. It was the third consecutive month of export growth and the highest monthly export level since October.
The weakness in China comes as Toyota faces increasingly intense competition from domestic Chinese automakers. Chinese brands have expanded rapidly with battery-electric and software-focused vehicles, putting additional pressure on established global manufacturers. Toyota’s sales of Toyota and Lexus vehicles in China were down 24.3% in July.
Toyota’s July figures include the Lexus luxury brand but exclude the separate results of Daihatsu when looking specifically at Toyota and Lexus. Including Daihatsu, the wider Toyota Group sold 912,683 vehicles globally in July, down 5.3% from a year earlier. Group production stood at 934,953 vehicles, a 1.4% decline from July 2025.
