JAPAN TODAY



 

Toyota Motor Corp said Thursday its global sales and production for July hit records for the month on the back of robust demand for hybrids in North America and China, although the impact of the higher U.S. auto tariff has cast a shadow over its profit outlook.

But global production in the month fell at seven other major Japanese automakers, including Honda Motor Co and Nissan Motor Co, bringing the total for the eight firms down 1.7 percent from a year earlier to 2,015,932 units amid fierce competition in Asia and Europe.

Production in Toyota rose 5.3 percent from a year earlier to 846,771 units, and sales gained 4.8 percent to 899,449 units, the world's largest automaker by volume said.

By region, output in the United States increased 28.5 percent to 95,145 units, thanks to solid demand, marking a recovery from a drop due to production suspensions forced by recalls. In China, production rose 17.1 percent to 135,235 units as a new EV model drew customers.

In Japan, output slipped 5.5 percent to 292,041 units as operations at some plants were suspended after supply chains were disrupted by tsunami warnings and advisories issued after a powerful earthquake hit off Russia's Kamchatka Peninsula.

For the current fiscal year through March 2026, Toyota has forecast its net profit to fall 44.2 percent to 2.66 trillion yen as the higher U.S. auto tariff is expected to outweigh cost-cutting and an increase in sales of higher-margin models.

Honda said its July production slipped 7.0 percent from a year earlier to 277,635 units due to intensifying price competition in China, while output at the struggling Nissan fell 4.2 percent to 227,563 units. Suzuki Motor Corp edged down 0.2 percent to 293,158 units.

Toyota group minivehicle maker Daihatsu Motor Co logged a 6.7 percent decline to 129,001 units against a backdrop of a temporary shutdown of domestic plants in July.

Mazda Motor Corp has been scaling back production for the United States, with output falling 22.6 percent to 86,551 units.

The results come after Japan agreed to a 15 percent tariff on cars, down from the current 27.5 percent but above the 2.5 percent rate that existed before U.S. President Donald Trump imposed the sector-specific duty in April. The timing of the new rate taking effect remains unclear.

Meanwhile, combined global sales of the eight automakers rose 1.2 percent to 2,041,202 units, while domestic output fell 7.8 percent to 705,101 units.