Why Toyota's sales are falling 4 months in a row
What's the story
Toyota has reported a 7.2% decline in its global vehicle sales for May, marking the fourth consecutive month of decline. The drop is largely attributed to lower demand in China and the Middle East, despite a robust growth in Japan. The company also witnessed a 5.5% decrease in production, with the decline encompassing Toyota's Lexus division, and drops of 3.8% in the US and 13.3% in Asia.
Sales breakdown
Mixed regional performance
Toyota's overseas sales took a major hit, falling by 9.6%. However, the company's domestic market in Japan saw an 11.1% increase in sales, driven by strong demand for models like RAV4 and bZ4X. The regional performance was mixed, with China witnessing a massive 31.7% drop due to tough market conditions including rising petrol prices while the Middle East saw an even bigger slump of 38.6%.
Market impact
A slight dip in US sales
In the US, Toyota's biggest market, sales dipped slightly by 0.6%. This comes as part of a wider trend that has seen the company struggle to maintain its foothold in some key markets.