In February, Toyota Motor experienced a 7% drop in global sales compared to the same period last year. This decline was primarily attributed to a significant decrease in sales in China, the largest auto market globally, where sales plummeted by 36%. The decline in China was influenced by several factors, including the timing of the Lunar New Year holiday and intense competition in the market, leading to a price war.
While the Lunar New Year holiday fell in February this year compared to January last year, contributing to the decline in sales, Toyota also faced challenges from fierce competition in China’s auto market. However, for January and February combined, the sales decline in China was less severe at 0.7%.
Despite the challenges in China, Toyota saw a 16% surge in U.S. sales and a 14% increase in European sales for February. However, domestic sales in Japan plummeted by a third due to production stoppages at Daihatsu, a small car unit of Toyota, which also faced reputational damage from a safety test scandal reported almost a year ago.
