Toyota Global Sales Slide for Fourth Straight Month Amid Sharp Drops in China and Middle East

Toyota Motor Corporation reported global sales of 834,300 vehicles in May, down 7.2% year-over-year, marking the fourth consecutive month of annual declines. Cumulative global sales from January to May totaled 4,140,400 units, a 3.5% decrease compared to the same period last year. In China, May sales fell sharply by 31.7% year-over-year to 102,300 units. Sales for the first five months of the year reached 579,400 units, down 14.8% year-over-year. The Middle East recorded the steepest regional decline globally, with May sales plunging 38.6% to 29,600 units. January-to-May cumulative sales in the region totaled 183,400 units, down 21.2% year-over-year. Toyota suspended vehicle production for the Middle Eastern market due to the U.S.-Israel-Iran conflict and the blockade of the Strait of Hormuz in the first half of the year, which triggered an energy crisis and supply chain disruptions. The company cited rising oil prices and other adverse market conditions as contributing factors to the sales decline. On the electrified vehicle front, Toyota’s global sales of electrified models rose 10% year-over-year in May to 467,600 units. Battery electric vehicle (BEV) sales surged 170.9% to 37,300 units in May. From January to May, BEV sales totaled 155,100 units, up 138.3% year-over-year. However, in China, intensified competition and a high base effect from the launch of the bZ3X model in the same period last year led to a 10.9% year-over-year decline in electrified vehicle sales in May, bringing the monthly total to 70,700 units.