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Toyota unveils a new vehicle under its Lexus brand in Beijing, China. / AP-Yonhap

Toyota Motor's global sales declined in the first half of its fiscal year for the first time in two years, weighed down by weak demand in China. Although worldwide sales of hybrid and electric vehicles reached record highs, they were not enough to offset declines in China and the Middle East.

The Yomiuri Shimbun reported on Oct. 29, citing Toyota's announcement, that global sales of Toyota and Lexus vehicles totaled 5,059,014 units from April through September, the first half of fiscal 2026, down 4.0% from a year earlier. The figures cover the first half of the Japanese company's fiscal year, rather than the conventional January-to-June period.

Weakness in the Chinese market was the main reason for the decline. Sales in China plunged 25.1% year-on-year to 684,903 vehicles. The Yomiuri Shimbun reported that rising gasoline prices resulting from deteriorating conditions in the Middle East had reduced sales of hybrid and gasoline-powered vehicles in China. Sales in the Middle East also fell 35.1% to 187,802 vehicles.

Hybrid and EV sales hit record highs

Toyota's vehicle sales increased in North America, Europe and Japan. In North America, where demand for hybrids remained strong, sales rose 1.8% to 1,538,839 vehicles. Sales in Europe increased 1.4% to 594,913 vehicles, while those in Japan climbed 12.4% to 802,798 vehicles.

By powertrain type, both hybrid and electric vehicles set new sales records. Global hybrid vehicle sales increased 8.4% year-on-year to 2,368,674 units, while electric vehicle sales more than doubled to 230,764 units, reaching 2.2 times the year-earlier level.

Toyota benefited from growing demand for hybrid vehicles in North America. In China, however, sales of both hybrid and gasoline-powered vehicles declined, highlighting sharp differences across regional markets. Despite sales growth in three major markets, weakness in China and the Middle East pushed overall sales lower.

Worldwide sales for the Toyota Group, including Daihatsu Motor, fell 4.6% year-on-year to 5,381,058 vehicles. Group-wide sales also declined in the first half of the fiscal year for the first time in two years.

                                                                                                           Choi Young-jae