Toyota sees record global sales despite Trump's tariff turmoil
Toyota's global sales, including that of subsidiaries Daihatsu Motor and Hino Motors, rose 7.4 per cent to more than 5.5 million units between January and June, the company said on Wednesday (Jul 30). That's mostly due to strong demand in the US, Japan and China. Production grew 8.8 per cent to 5.5 million units during the period, including a nearly 20 per cent jump in domestic output.
The carmaker's sales were bolstered in the early part of the year by a last-minute rush from customers to lock-in purchases before Trump's 25 per cent tariff on car imports.
While that sparked uncertainty across the global auto sector, Japan's carmakers may be better placed than rivals following a trade pact reached this month that will see just a 15 per cent duty on vehicles imported to the US. Toyota's shares climbed 14 per cent on Jul 23 in response to the deal.
The US is the biggest export market for Japanese carmakers, with US$40.8 billion worth sold there last year and additional models imported from factories in Canada or Mexico. Toyota, which was set to face the biggest hit from tariffs among its peers, has said it hopes for improved ties between the US and Japan, and called for further reductions in duties.
The carmaker said that in June, global sales rose 2.7 per cent to 937,246 units. Production increased 7.7 per cent to 963,455 units.
While a rebound in the popularity of hybrids has helped its bottom line, Toyota and other legacy brands face intense competition from a wave of electric vehicle (EV) makers, led by Elon Musk's Tesla and China's BYD.
Toyota has sold about 82,000 battery EVs so far this year, almost all of which were delivered to customers outside of Japan. BLOOMBERG
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