Global auto production surged for Toyota Motor Corp. in July, supported by strong hybrid demand in the U.S. and China. The company posted record monthly sales and output, continuing its lead as the world’s top carmaker by volume. Global auto production grew 5.3 percent for Toyota, reaching 846,771 units. Sales increased 4.8 percent to 899,449 units, marking a solid monthly record. The rise came despite growing uncertainty due to increased U.S. auto tariffs.
In contrast, production for seven other major Japanese carmakers dropped. Combined, these automakers logged a 1.7 percent year-on-year decline, totaling 2,015,932 units. Competitive pressures in Asia and Europe continue to weigh heavily on the sector. Toyota’s U.S. output jumped 28.5 percent to 95,145 units. This surge came after production recovered from prior suspension issues caused by recalls. Meanwhile, China production rose 17.1 percent to 135,235 units. New EV models helped drive strong consumer interest.
However, domestic production in Japan fell 5.5 percent to 292,041 units. Earthquake-triggered tsunami warnings led to temporary plant shutdowns, disrupting supply chains across the region. Looking ahead, Toyota expects a 44.2 percent drop in net profit for the fiscal year ending March 2026. The company projects 2.66 trillion yen ($18 billion) in earnings. Rising U.S. tariffs are expected to offset gains from cost-cutting and premium vehicle sales.
While Toyota enjoyed growth, others faced different challenges. Honda reported a 7 percent production decline, with July output at 277,635 units. Intense pricing competition in China remains a concern for the company. Nissan’s production also fell, dropping 4.2 percent to 227,563 units. Mazda saw the steepest drop, with U.S.-focused output down 22.6 percent to 86,551 units. Suzuki and Daihatsu experienced smaller declines, both facing temporary plant closures and regional slowdowns.
Despite weak domestic numbers, total global auto production among the eight firms climbed slightly. Sales increased 1.2 percent to 2,041,202 units. Domestic output, however, dropped 7.8 percent to 705,101 units. Japan recently agreed to lower its car export tariff to 15 percent. This is down from 27.5 percent, yet still above the pre-2018 level of 2.5 percent. The new rate’s implementation date remains uncertain. In summary, Toyota thrived while competitors struggled. Global auto production trends show growing divides among top automakers.
