Under the heavy pressure of tariffs, Toyota's sales have broken records for three consecutive months! In May, global sales reached approximately 956,000 vehicles, setting a new high
Under the pressure of Trump's tariffs, Toyota Motor's global sales reached 955,532 units in May, setting a new historical high and marking three consecutive months of growth. The demand for hybrid models in the U.S., Japan, and China markets is strong, with sales increasing by 8% year-on-year. Toyota will raise the prices of some models sold in the U.S. next month, with an increase of over $200. If negotiations with the U.S. government fail to reduce tariffs, it is expected to face losses of billions of dollars
According to Zhitong Finance APP, despite the immense loss pressure faced by global automakers due to U.S. President Donald Trump's tariffs on imported cars, Toyota Motor Corporation (TM.US) has achieved record sales for the third consecutive month in May, driven by strong demand for hybrid models in the U.S., Japan, and China. Data released by Toyota on Friday showed that its global sales in May reached 955,532 vehicles, an 8% year-on-year increase, including sales from its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd.; global production was 906,984 vehicles.
Toyota and its luxury brand Lexus saw sales growth of over 4% in the Japanese market, 7% in the Chinese market, and an 11% increase in the North American market.
A Toyota spokesperson revealed last week that the company will raise prices on some models sold in the U.S. next month, with increases exceeding $200, as part of regular price adjustments based on market conditions and competition. Previously, Mitsubishi Motors Corp. announced price increases for three models in the U.S. market. Major automakers are competing to minimize the impact of the China-U.S. trade war.
It is worth noting that major Japanese automakers heavily rely on the U.S. market, and if negotiations with the White House do not succeed in reducing tariff levels, they will face billions of dollars in losses.
Toyota stated in May that tariffs alone would result in a loss of 180 billion yen (approximately $1.2 billion) over the two months of April and May. Nissan Motor Co. and Honda Motor Co. (HMC.US) both expect losses of up to $3 billion, while Subaru Corp. and Mazda Motor Corp. have not yet disclosed their annual profit forecasts for the fiscal year ending March 2026.
Trump's tariffs have severely impacted the Japanese automotive industry and could strike at the core of the Japanese economy. For a long time, a dense network of small and medium-sized suppliers has formed the backbone of the Japanese automotive industry. Statistics show that two-thirds of Japan's workforce is employed by companies with fewer than 1,000 employees, many of which are directly or indirectly related to the automotive industry. According to the Japan Automobile Manufacturers Association, the industry employs 5.6 million people, accounting for about 8.3% of Japan's workforce, and generates approximately 10% of Japan's gross domestic product.
Japan's chief trade negotiator Ryosei Akazawa stated on Thursday that Japan cannot accept Trump's proposed 25% tariff on automobiles. He pointed out that Japanese automakers produce about 3.3 million vehicles annually in the U.S., far exceeding the 1.37 million vehicles exported to the U.S.
Earlier this month, Toyota Chairman Akio Toyoda was re-elected at the company's annual shareholders' meeting with a 97% approval rate. After experiencing a decline in investor support for three consecutive years, this rebound in support suggests market recognition of Toyota's robust performance during turbulent times in the global automotive industry