The exit of the national supplement combined with diplomatic fluctuations, dragged down global performance by 12% in sales of Toyota (TM.US) in China

The Zhitong Finance App learned that due to the suspension of China's automobile national supplements, global sales and production of Toyota Motor Corporation (TM.US) both declined in November, and the company's sharp contraction in the Chinese market became the main cause.

The Japanese car company released data on Thursday that global sales of its business (including Daihatsu Motor and Hino Motors) fell 1.9% year on year to 965,919 vehicles in November; production fell 3.4% year on year to 934,001 vehicles during the same period.

Currently, global automakers are facing multiple uncertainties: trade frictions continue to escalate, industry regulatory policies are frequently adjusted, macroeconomic prospects are uncertain, and Toyota's performance is just like the “barometer” of the industry, reflecting the serious challenges faced by car companies in balancing long-term market demand with short-term economic policy pressure.

Due to the suspension of car replacement subsidies in key cities in China, Toyota pointed out that sales of the two major brands, Toyota and Lexus, fell sharply by 12% year on year in November. It is worth noting that the background of the release of this sales data is the diplomatic tension between China and Japan that has continued to unfold since November — Japanese Prime Minister Sanae Takaichi made erroneous remarks about China's Taiwan Province issue at the time, triggering strong dissatisfaction in China. The Chinese side then issued a travel safety reminder to Japan.

Looking at regional production performance, Toyota's production in Thailand increased 15% year on year in November and the US market increased 9% year on year; in contrast, production in the Chinese market fell 14% year on year, and the Japanese and British markets also recorded 9.7% and 7.9% declines respectively.

The EU's decision to adjust the fuel vehicle ban this month provides more flexibility for traditional car companies to increase mass production of electric vehicles. For a long time, Japanese car companies such as Toyota have taken the lead in oil-electric hybrid technology compared to traditional car companies that rely on pure fuel vehicles; however, the current loosening of EU policies may open up new market breakthroughs for Chinese electric vehicle manufacturers that are poised to gain momentum.

At the same time, Toyota has also been drawn into the vortex of US trade policy. While US President Trump was in office, he planned to impose high tariffs on imported cars and parts, and Toyota has always been his focus. At the beginning of this month, Trump stated that it would pave the way for Asian lightweight “K-Cars” to enter the US market, but such models have yet to meet US federal safety standards for new cars.

Recently, Toyota announced that it will return three American-made models to Japan. The move was seen as a sign of goodwill towards Trump.