Toyota Motor Corp. achieved record global sales in July, extending its growth streak to a seventh consecutive month, as robust demand in the United States and China helped offset challenges from slowing domestic sales and intensifying trade pressures.
Including subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., Toyota sold 963,796 vehicles worldwide last month, a 4% increase from the previous year. Global production also rose 2.6% to 947,943 units. While sales in Japan slipped 2%, overseas demand surged 6%, underlining the importance of international markets to the automaker’s performance.
North America remained a key growth driver. Toyota and Lexus models saw a 20% sales jump in the region, powered by consumer appetite for SUVs, pickup trucks, and hybrid vehicles. In China, Toyota’s second-largest market, sales rose 5.7%, supported by steady demand for hybrids despite growing competition from local electric vehicle makers.
The strong performance comes against the backdrop of heightened trade uncertainty. Earlier this month, Toyota warned of a ¥1.4 trillion ($9.5 billion) blow to its earnings from tariffs imposed by U.S. President Donald Trump on imported cars and parts. The company has trimmed its full-year operating profit forecast to ¥3.2 trillion for the fiscal year ending March 2026, down from its initial ¥3.8 trillion projection. Although Japanese automakers avoided a 25% tariff, the current 15% duty remains a significant headwind for sales in their largest overseas market.
Rivals posted mixed results in July. Honda Motor Co. saw global sales fall 7.6% to 279,727 vehicles, weighed down by a sharp slowdown in China, with production also dropping 7%. Nissan Motor Co., by contrast, eked out growth for the first time in 16 months. Its sales rose 0.5% to 262,745 vehicles, buoyed by a 22% surge in China, where its fully electric N7 model has gained traction with consumers seeking affordable EVs.
Beyond tariffs, Japanese automakers face a broader challenge: the accelerating global shift toward battery-electric vehicles. Toyota, which has leaned heavily on hybrid technology, has benefited in the short term from surging hybrid demand. But rivals such as China’s BYD Co. and Tesla Inc. are dominating the fast-growing EV segment with models that increasingly set the pace in innovation, affordability, and scale.
Analysts say Toyota’s July results highlight both its resilience and the urgency of adapting to an industry in transition. Strong hybrid sales and loyal demand for Toyota’s SUVs and trucks have helped the company weather geopolitical and economic headwinds. Yet the longer-term question is whether the world’s largest carmaker can maintain its lead as the global auto industry pivots toward full electrification
