On the Dash:
- Toyota posted a 3% global sales increase to 1 million units in October, driven by strong U.S. demand despite declines in China and Japan.
- The company raised its profit forecast even as it faced a 1.4 trillion yen tariff impact.
- Rivals Honda and Nissan reported October sales declines amid chip shortages, shrinking demand in China, and U.S. weakness.
Toyota reported higher global sales in October as strong demand in the United States offset declines in China and Japan, underscoring the automaker’s growing reliance on the North American market amid tariffs and geopolitical tensions.
The company said worldwide sales rose 3% from a year earlier to 1 million units, marking an October record. Sales of Toyota and Lexus vehicles climbed 12% in the U.S., buoyed by steady demand for models such as the RAV4 compact crossover. The growth helped counter a 6.6% sales drop in China and a 4.2% decline in Japan.
The results come as Toyota navigates a shifting global environment shaped by President Donald Trump’s 15% tariffs on imported autos and parts and increased friction between Tokyo and Beijing. Recent comments by Prime Minister Sanae Takaichi on Taiwan prompted retaliation from China, adding pressure on Japanese brands already facing intense competition from local EV makers.
Earlier this month, Toyota raised its full-year operating profit outlook despite projecting a 1.4 trillion yen hit from U.S. tariffs. The company now expects an operating profit of 3.4 trillion yen for the fiscal year ending in March.
Meanwhile, battery electric vehicle (BEV) sales rose sharply, increasing 74% year over year to 18,322 units globally. Conversely, Toyota’s gains widened its lead over domestic rivals as Honda and Nissan posted declines.
For instance, Honda’s sales fell 5.6% in October to 292,319 units, driven by a steep 20% decline in China. The automaker also reported a 14% production decline in North America after shipments of chips from Nexperia were halted. The Netherlands earlier invoked supervisory powers to protect the chipmaker, which is owned by China’s Wingtech Technology and remains the last European producer of legacy automotive semiconductors.
Moreover, Nissan reported a 4.8% sales decline to 258,517 units, weighed down by a 14% decrease in the U.S. despite an 11% gain in China.
Ultimately, Toyota’s October performance highlights the company’s ability to maintain momentum while competitors struggle with weakening demand in key markets, supply chain strains, and escalating political and regulatory pressures.
