Toyota's Sales in China Decline for Ninth Consecutive Month

[Market Update] Toyota's sales in China fell by 31.7% year-over-year in May, marking the ninth straight month of negative growth.

Core Trend: Collapse of ICE Vehicles Drags Down Overall Performance

Toyota sold 102,300 vehicles in China in May, down 31.7% year-over-year and a further 3.9% decline from April. Sales have contracted year-over-year for nine consecutive months since September 2025, with the rate of decline widening each month. Once best-selling models like the Corolla now sell only around 5,000 units per month, while the Camry and RAV4 continue to struggle despite significant terminal discounts.

Strategic Foundation: Early Progress in Electrification Insufficient to Offset Overall Downturn

Although internal combustion engine (ICE) vehicle sales remain weak, electrified models (including hybrids and battery electric vehicles) now account for 70% of Toyota’s total sales in China. Battery electric vehicle (BEV) sales reached 13,700 units in May, doubling year-over-year and emerging as a key growth driver. However, Toyota’s strategy of "hybrid-first, cautious BEV rollout" faces mounting challenges in the Chinese market, where it struggles to compete against comprehensive EV offensives from domestic brands like BYD and Geely.