Toyota Motor Corp. Sponsored ADR (TM.US) September global sales edged down; China sales fell for an eighth consecutive month.

Toyota Motor Corp. Sponsored ADR (TM.US) reported a decline in September sales, mainly due to continued weakness in China. Toyota said in a statement Thursday that global sales, including those of subsidiary Daihatsu, fell 2.9% year-on-year to 921,847 units; production dropped 4.5% to 989,168 units. The world's largest automaker is facing challenges in the Chinese market. Strong demand for new models and hybrid vehicles has allowed Toyota to maintain or even increase sales in Japan, Europe, and the United States. However, Toyota's sales in China have fallen for eight consecutive months, exacerbating the decline in its overall sales. Traditional automakers have been struggling to compete with Chinese brands. Chinese brands continue to launch electric vehicles to meet the needs of customers seeking the latest features and in-car software. In September, Toyota and Lexus brand sales in China fell 20%. Sales in the Japanese market rose slightly by 1.8%, while North American sales grew 8.6%, largely thanks to a resurgence in popularity of gasoline-electric hybrid modelsa technology pioneered by the Japanese automaker. In August, Toyota raised its profit forecast for the fiscal year ending March 2027 to JPY3.4 trillion, an adjustment supported by demand for hybrid models in the U.S. market and a favorable buffer from exchange rates. Previously, the company had expected a rare profit decline for the fiscal year due to the Middle East conflict driving up raw material costs. Toyota also said hybrid vehicle sales are expected to exceed 5 million units for the first time in 2026.