Toyota Motor Corporation experienced a rare decline in both sales and production in November 2025, driven largely by a significant fall in the Chinese market.
Production levels shrank as policy changes in China and diplomatic tensions weighed on vehicle demand.
In November 2025, Toyota's global sales, which include units from its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., fell by 1.9% to 9,65,919 units compared to the same period in the previous year.
Meanwhile, global production declined by 3.4% to 9,34,001 units. A sharp 12% drop in Toyota and Lexus brand sales in China led the downward trend. The slump follows the discontinuation of subsidies that previously encouraged purchases of electric and fuel-efficient vehicles.
The decline in sales comes as automakers face uncertainty stemming from trade pressures, shifting regulations, and changes in economic sentiment across key markets. This contraction marks a rare reversal for Toyota, which has historically maintained a consistent upward trajectory in global volumes.
Toyota's production trends displayed striking regional discrepancies. While Thailand recorded a 15% increase and the United States registered a 9% rise, China saw a 14% decline.
Production in Japan also dropped by 9.7%, and the UK experienced a 7.9% decrease. These fluctuations reflect varying market dynamics and economic conditions impacting consumer demand and manufacturing stability across locations.
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Diplomatic strains between China and Japan intensified during the same period, possibly affecting consumer behaviour in China, Toyota’s largest market outside Japan.
The situation followed political comments regarding Taiwan, which led to China warning citizens against travelling to Japan. Although Toyota increased production in its US facilities, the dip in Chinese sales had a greater impact on overall performance.
European regulatory changes easing restrictions on combustion engines may offer legacy automakers more flexibility. However, this could also open doors for more competition from Chinese electric vehicle makers.
In the US, developments such as proposed tariff hikes and discussions on introducing lightweight "kei" cars are influencing Toyota’s production strategy. Reflecting this, Toyota plans to ship 3 US-made models back to Japan.
The November 2025 downturn in Toyota’s sales and production underscores the influence of regional policy changes and geopolitical dynamics on global automotive performance. While growth was seen in countries like Thailand and the US, the downturn in China had a stronger effect on the overall figures.
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Published on: Dec 26, 2025, 10:34 AM IST
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