Toyota's Global Sales Stagnate in November as Production Pause and Competition Weigh

(Bloomberg) -- Toyota Motor Corp.’s global sales plateaued in November as lackluster demand coalesced with a pause in production at two plants.

Global sales at Toyota Motor Corp. leveled off in November as slowing demand converged with a pause in production at two plants.

Vehicle sales — encompassing those of subsidiaries Daihatsu Motor Co. and Hino Motors Ltd. — reached 984,348 units last month, down 0.2% from November 2023, the Japanese automaker said Wednesday. Production decreased 9.4% year-on-year to 966,921 units.

While Toyota maintains its position as the world’s largest automaker, its operations are feeling the pressure of increasing competition over hybrid gasoline-electric cars in the US and locally made electric vehicles in China. Its presence in markets across Southeast Asia is also being gradually eroded by Chinese competitors.

More broadly, weaker demand for new cars globally this year was compounded by output cuts at Toyota caused by regulatory probes and recalls in Japan and abroad.

Output between January and November fell 7.3% in Japan and 15.2% in China, highlighting the intensifying competition in the world’s largest car market.

In China, production, or vehicles off the delivery line as opposed to end-consumer sales, declined 1.6% year-on-year last month as Toyota and other legacy auto brands, including General Motors Co. and Volkswagen AG, find themselves lagging behind.

At home meanwhile, the emergence of a new rival could be a threat to Toyota’s dominance, after Honda Motor Co. and Nissan Motor Co. kicked off negotiations this week to combine under a holding company slated to list by August 2026.