Toyota Posts Rare Sales Drop in November, Dragged Down by China

Toyota Motor Corp.’s sales and production fell in November, largely due to a sharp decline as China halted subsidies aimed at boosting sales of electric and fuel-efficient cars.

Subsidiaries Daihatsu Motor Co., the Japanese automaker said Thursday. and Hino Motors Ltd. It said that global sales, including 2018, fell 1.9% year-on-year to 965,919 units. Production decreased by 3.4% to 934,001 vehicles.

Global automakers face greater uncertainty as they navigate an environment rife with trade tensions, regulatory changes and uncertain economic outlooks. Toyota’s results serve as a barometer for the industry’s struggle to balance strong long-term demand with short-term economic and political headwinds.

The company stated that sales of Toyota and Lexus brands in China fell 12% in November, and that trade subsidies in major cities ended due to depletion of funds. The figures were announced amid diplomatic tensions that have been building between China and Japan since November, when Prime Minister Sanae Takaichi made comments about Taiwan that angered Asia’s largest economy. China responded by warning its citizens not to travel to Japan.

While Toyota’s production in Thailand increased by 15 percent and 9 percent in the United States last month, it decreased by 14 percent in China, 9.7 percent in Japan and 7.9 percent in the UK.

The European Union’s decision this month to reverse an effective ban on internal combustion engines is likely to offer greater flexibility to legacy automakers looking to mass produce battery-powered cars. While Toyota and other Japanese automakers pioneering gas-electric hybrid technology already have an advantage over legacy manufacturers that remain reliant on pure gasoline cars, the EU overhaul could give Chinese EVs the opening they’ve been waiting for.

Meanwhile, the company was targeted by President Donald Trump, who was preparing to impose high taxes on cars and car parts imported into the United States. Earlier this month, Trump said he was paving the way for Asian lightweight “kei” cars to be produced and sold in the United States, even though they do not currently meet federal safety standards for new vehicles.

Recently, Toyota announced that it would send three American-made models back to Japan in a gesture aimed at fulfilling Trump’s wishes.

With the help of Sakura Murakami.

This article was generated from an automated news agency feed without modifications to the text.