Toyota Posts Global Production Down 3.9 Percent in February

Vehicle delivery activities at the Toyota factory. (Toyota Global)

NAGOYA - Toyota's global production weakened again in February 2026. Kyodo News quoted Monday, March 30, reporting that Toyota Motor Corp. recorded production of 749,673 units, down 3.9 percent from the same period last year. This is the fourth consecutive month of decline, with the biggest pressure coming from China and Japan.

Not only production. Toyota's global sales also fell 3.3 percent to 737,134 units. This decline was the first in the last three months.

As reported by Kyodo News, Toyota's production outside Japan fell 4.6 percent to 470,757 units. In China, the decline was deeper, at 11.5 percent to 78,457 units. Increasing competition and fewer working days during the Chinese New Year holiday are said to be the main causes.

In the domestic market, Toyota's production in Japan fell 2.6 percent to 278,916 units. The reason is mainly the number of operating days is less than last year. In North America, production fell 9.1 percent to 159,237 units. The sharpest decline was in Canada, which fell 46.2 percent to 23,173 units due to production cuts ahead of the RAV4 model update.

However, the United States market gave a different signal. Toyota's production in the country actually rose 3.4 percent to 110,978 units, supported by strong demand for hybrid vehicles. Toyota sales in the US also grew 3.2 percent to 180,950 units, although total overseas sales fell 2.2 percent to 614,870 units.

Meanwhile, sales in Japan fell 8.3 percent to 122,264 units. Kyodo News said the decline was triggered by a weakening of vehicle registrations ahead of the abolition of environmental performance taxes at the end of March. In China, sales also fell 13.9 percent to 82,471 units.

This pressure is also seen in the Japanese automotive industry in general. Global production of Japan's eight major car manufacturers in February fell 1.4 percent to 1.94 million units. Honda fell 5 percent, Nissan fell 13.7 percent. Only Suzuki recorded an increase of 12.3 percent to 320,617 units, a record high for February, driven by strong sales in India.

Quoted from Kyodo News, the impact of the US-Israeli war that broke out at the end of February is expected to only be seen in data starting in March. Toyota even plans to cut domestic production for the Middle East market by about 24,000 units in April, after having previously cut about 20,000 units in March. Nissan also reduced production due to delays in shipments to the Middle East.