Toyota, a major automotive manufacturer with a strong presence in India with models such as the Fortuner and Innova, has achieved a new global sales milestone. In August, Toyota sold 900,598 vehicles worldwide, which is a modest 1% increase over the previous year. Despite a nearly 4% increase in global sales, achieving a monthly record, a significant drop in demand, exceeding 10%, was observed in Japan.
Toyota experienced strong growth during the majority of 2025. The company consistently reported impressive sales and production data. However, this growth slowed in August. The world’s leading car manufacturer, which usually remains stable even during difficult conditions, faced difficulties in its home market.
Production reflected the same trend. Production in August increased by nearly 4%, reaching 837,869 units, but the weakness in the domestic market creates questions around whether Japan, which has been a reliable market for Toyota, is now facing challenges due to changing customer preferences and economic issues.
Conversely, Toyota saw a strong performance in the United States. Sales of Toyota and Lexus models in the US increased by roughly 14% in August, driven primarily by the consistent demand for hybrid cars. Sales of Battery Electric Vehicles (EVs) increased by 35% to over 17,000 units globally, but Japan presents a different story. Only 18 fully electric Toyotas were sold in August, indicating the slow development of the domestic EV market. In China, another significant market for Toyota, the situation remained relatively stable. Despite challenges in growth for most foreign brands, Toyota’s line of hybrid cars continues to give them strength.
The United States has imposed a 15% tariff on imported cars and parts, which has led Toyota to lower its profit forecast for the current year. The company projects an operating income of 3.2 trillion yen for the fiscal year ending March 2026, which is down from the previous estimate of 3.8 trillion yen, indicating a potential loss of around 1.4 trillion yen (US$9.5 billion). Toyota’s new report points toward a delicate phase. Strong international demand continues to sustain the company, but the decline in Japan shows significant changes in consumer preferences and purchase behaviors.