On June 29, Toyota Motor released its global sales, production and export results for May 2026. Weaker demand in key overseas markets, including China and the Middle East, weighed on performance. Global sales totaled 885,207 vehicles in May, down 7.4% year-on-year, marking the fourth consecutive month of decline. By region, Japan remained a bright spot, while overseas markets continued to weigh on the group’s overall performance. Toyota sold 156,639 vehicles in Japan in May, up 6.5% year-on-year. Overseas sales totaled 728,568 units, down 9.9% from a year earlier. Toyota’s global sales from 2017 to May 2026 China remained one of the weakest-performing markets. Toyota, including the Lexus brand, sold 102,299 vehicles in China in May, down 31.7% year-on-year, extending its decline to a fourth consecutive month. Toyota attributed the sharp drop to intensifying competition in China, changes in market conditions and shifting consumer demand. Meanwhile, sales in the Middle East fell 38.6% year-on-year, while the U.S. market remained relatively resilient, with sales slipping just 0.6%. Production was also affected by slowing overseas demand. Global vehicle output declined 5.5% year-on-year in May, including a 3.8% drop in the United States and a 13.3% decline across Asia. Toyota’s global production from 2017 to May 2026 Although domestic production in Japan increased, it was insufficient to offset lower output overseas. Despite the broader sales slowdown, Toyota’s electrified vehicle lineup continued to grow globally. Combined sales of hybrid, plug-in hybrid and fuel-cell vehicles under the Toyota and Lexus brands reached 467,584 units in May, up 10.2% year-on-year. That momentum, however, did not carry over to China. Toyota’s electrified vehicle sales in China totaled 70,667 units in May, down 10.9% from a year earlier. As Chinese domestic automakers continue to expand their market share, traditional joint-venture brands are facing mounting pressure. FAW Toyota sold 50,415 vehicles in May, down 22.5% year-on-year, while GAC Toyota delivered 55,048 units, a decline of 14.7%. Toyota bZ3X However, GAC Toyota’s all-electric bZ lineup recorded monthly sales of 10,073 units, accounting for 18% of the company’s total sales. Among them, the bZ3X sold 6,731 units, making it one of the brand’s key new energy models. Toyota is not the only Japanese automaker under pressure in China. Honda sold just 28,279 vehicles in China in May, down 48.7% year-on-year, marking its 28th consecutive month of decline. Nissan’s China sales totaled 37,782 vehicles in May, down 34.9% year-on-year. The company recorded its second consecutive monthly decline, with the pace of contraction accelerating from April.