Toyota's China Sales Fall 25% Year-on-Year from April to September

Toyota Motor reported sales of 684,903 vehicles in the Chinese market from April to September this year, down 25% year-on-year, marking the lowest level for the same period since 2017. "Due to factors such as rising gasoline prices, the overall market has remained weak, with the fuel vehicle and hybrid vehicle markets particularly hard hit," Toyota said in a statement. Since the beginning of this year, Toyota's largest year-on-year sales decline in the Chinese market occurred in May, when sales totaled 102,299 vehicles, down 31.7% year-on-year. The pace of decline subsequently slowed, with year-on-year drops of 22.8% and 19.7% in August and September, respectively. Data from Fitch Ratings showed that total passenger vehicle deliveries in China fell 23% year-on-year in the second quarter (April to June), following an 18% decline in the first quarter (January to March). The agency expects full-year sales in China's auto market to decline by a "high single-digit percentage." In the second quarter, the share of Chinese brands in the domestic market rose to 69%. Toyota's joint ventures with GAC Group and China FAW are also facing challenges. Japanese auto parts manufacturer Denso said its plants in China are operating at lower capacity utilization rates as vehicle sales decline. Japanese parts suppliers also said that Japanese automakers, in order to reduce costs and curb market share losses, are increasingly turning to Chinese parts suppliers, with some Japanese suppliers having sought compensation from Japanese automakers.