Number one car manufacturer Toyota’s global sales fell over 5% last month and decreased by 4.7% for the first half of 2024. This is mainly due to the decline in sales in Japan (-32%) and in China (-10.8%). The good figures for the U.S. and Europe couldn’t compensate for the ‘Asian’ loss in sales.

Worldwide, Toyota sold 5.16 million vehicles in the first half of 2024, still outselling the Volkswagen group for the fifth consecutive year. VW sold 4.35 million vehicles, down from 4.37 million a year earlier.

The fast-increasing sales of hybrid cars in North America (437,000 units, +57% compared to last year). Total sales in North America rose by 14.6%, while in Europe the sales rise was also 10.2%. Thanks to those excellent figures, overseas sales of the Toyota Motor Corp. still increased by 3.1%.

Problem case Asia

The biggest problem Toyota encountered was on its home turf. Domestic sales slumped by 32% to 823,595 vehicles. The scandals Toyota and its daughter Daihatsu were involved in (safety test data had been rigged) surely had their influence.

The Daihatsu production was halted from December 2023 (when the scandal broke out) until May 2024. Toyota also halted some domestic production during this period, admitting that it conducted vehicle tests in ways not specified by the government. A recent recall of the popular Prius also pushed down the figure.

Toyota’s sales decline in Asia comes as Chinese EV makers, including BYD’s aggressive price cuts, are squeezing foreign automakers out of the market. Toyota sold 10,8% fewer vehicles in China, 10% less in Indonesia, and 15% less in Thailand.

Chinese manufacturer BYD set a new sales record last month, with 341,658 new energy vehicles (NEVs) sold, up 35% year over year. BYD also sold 145,179 all-electric cars, up 13% year over year. Through the first half of 2024, BYD has sold over 726,000 EVs, up 18% from last year.

After declaring a so-called “liberation battle” on gas-powered cars earlier this year, BYD’s aggressive price cuts are making it hard for legacy automakers to compete.

With affordable EVs, like the Dolphin and Atto 3, rolling out in overseas markets, BYD is quickly gaining market share in key auto markets like Thailand, Indonesia, and Latin America.

BYD is even gaining market share on Toyota’s home turf. With an 184% increase, BYD led the charge as overall EV imports in Japan rose by 17%.

Some agitation

Nevertheless, the Toyota group plans to sell 10.95 million vehicles during the current fiscal year (ending March 2025), down only 1.3% from a year earlier. In May, the company said it would prioritize addressing internal issues (like the quality scandals) rather than pursuing volume.

The whole situation has also created unrest at the highest levels of the world’s number one automaker. At the latest annual meeting of shareholders, Chairman Akio Toyoda’s support was the lowest ever.

An increasing number of external shareholders shared concerns about how the company was led. Toyoda himself was imputed to be too hesitant in the energy transition, the reason why the company is now lagging behind compared to manufacturers like Tesla and BYD.

In a podcast interview published last week on Toyota’s website, Toyoda apparently mentioned that he won’t be re-elected as president again if his support still weakens. “No board member of Toyota has seen his support go so low in the entire history of the company,” Toyoda admitted.