Toyota’s Sales Performance
In 2024, Toyota sold 10.82 million vehicles worldwide, maintaining a strong lead over Volkswagen. However, in China, its sales have been slipping.
2022: Sales dropped by 0.2%
2023: Sales declined by 1.7%
2024: A sharper 6.9% year-on-year decline, with total sales falling to 1.776 million units
Once a dominant force in China, Toyota now faces stiff competition, shifting consumer preferences, and an evolving market landscape.
Intensified Competition and the Limits of Price Cuts
Toyota’s decline in China is relatively mild compared to other international brands, but the company is relying heavily on discounts and promotions to sustain its sales.
Reports from Chinese media suggest that some Toyota Camry models were being sold at up to 30% off, with prices dropping as low as 120,000 RMB (around 60,000 AED), significantly lower than the original 200,000 RMB price tag. While dealerships later clarified that the 120,000 RMB price was a rumor, it's undeniable that Camry prices have been slashed significantly.
To attract buyers, Toyota’s Chinese dealerships have introduced trade-in subsidies of up to 20,000 RMB and additional services worth 25,000 RMB. Just three years ago, models like the Highlander and Sienna were so popular that customers had to pay premiums to secure delivery. Today, Toyota is cutting prices to maintain its position in the market.
China’s Market Shift and the Rise of Local Brands
The Chinese automotive market is undergoing rapid transformation, driven by government policies promoting new energy vehicles (NEVs) and changing consumer preferences.
Local brands like BYD, NIO, and XPENG are gaining ground by offering affordable, high-performance electric vehicles (EVs) with advanced technology. These companies are leading in electrification, smart connectivity, and autonomous driving, attracting consumers who are increasingly prioritizing innovation.
(XPENG G6)
Toyota’s Struggles in the EV Market
Despite investing in electrification, Toyota has been slow to adapt to China's fast-moving NEV sector. Currently, it offers only two electric models in China—the bZ4X and bZ3—both of which have struggled to gain traction.
The bZ4X has performed especially poorly. In 2023, Toyota sold just 6,152 units of the model in China, and by 2024, cumulative sales dropped to only 5,204 units. To boost sales, Toyota dealers have offered discounts of up to 50%, but consumer interest remains low.
Toyota has traditionally been known for reliability and practicality, but in China’s fast-evolving EV market, these strengths alone are no longer enough. The bZ4X has faced criticism for issues related to driving range, performance, and overall user experience. While EVs make up only a small portion of Toyota’s total sales in China, its weak presence in this sector is affecting its overall market performance.
Challenges in the Hybrid Market
Toyota has long been a leader in the hybrid vehicle market, but its dominance is now being challenged by domestic brands.
Companies like BYD have introduced plug-in hybrid models that offer:
Lower fuel consumption
Electric-only driving capability for short trips
Government subsidies that reduce the purchase price by about 10%
These advantages have made Chinese hybrids more appealing to consumers, cutting into Toyota’s market share. Meanwhile, Toyota’s own plug-in hybrid models have struggled, with low sales and poor user experiences compared to their domestic rivals.
(BYD SONG PLUS DM-i)
Toyota’s Commitment to the Chinese Market
Despite its current struggles, Toyota remains committed to China and has ambitious expansion plans. Reports indicate that Toyota aims to produce at least 2.5 million vehicles annually by 2030, signaling its determination to reclaim lost ground.
According to insiders, Toyota’s ultimate goal is to increase production to 3 million units per year by 2030. Given that it produced 1.75 million vehicles in China in 2023, and with 2024 production expected to be lower, reaching this target would require a 60% expansion in just five years. While Toyota has not yet made this plan public, it has already begun strengthening its supply chain by working closely with suppliers.
In a statement to the media, Toyota said, “Due to the intense competition in the Chinese market, we are constantly considering various measures.” The company also expressed its commitment to producing better vehicles for the Chinese market. It is understood that Toyota plans to delegate more development tasks to Chinese employees who better understand local consumer preferences, particularly in the areas of electric vehicles and connected car technologies. “Internally, Toyota is increasingly aware that it needs to rely more on local employees to take responsibility and speed up product development in China. Otherwise, it may be too late,” an insider revealed.
Faced with the challenges of the Chinese market, if Toyota wants to maintain its leading position and continue to grow, learning from European automakers and collaborating with Chinese manufacturers on the development of electric vehicle technologies seems like a viable option. However, to achieve this collaboration, Japanese automakers must demonstrate the same proactive learning attitude as Volkswagen, which could be a significant challenge but also an unavoidable reality. After all, in a fiercely competitive market, only by continuously improving and learning can a company remain unbeatable.
Senior Writer The quest for automotive knowledge began as soon as the earliest memories. Various sources information, even questionable ones, have been explored including video games, television, magazines, or even internet forums. Still stuck in that rabbit hole.
