Toyota sales overcome US woes for first growth in 6 months

TOKYO: Toyota Motor Corp’s sales eked out growth for the first time in six months on strong demand in Europe and Japan, even as recalls in the US hindered the Japanese automaker’s recovery.

The carmaker’s global sales - including subsidiaries Daihatsu motor Co. and Hino motors Ltd. - rose 0.7% to 924,918 units in July, in what is the first up tick after a five straight months of declines, according to a company’s announcement. Worldwide output increased 0.6% to 923,658 units.

While demand was robust in some Asian countries - such as for sports utility vehicles in India - recalls of the company’s Grand Highlander and Lexus TX in the US proved to be a drag on July’s numbers.

And while Toyota’s new locally made Granvia minivan saw strong sales in China, the company still faced stiff competition from domestic carmakers in the country in line with most global automakers.

The outlook for the current month appears gloomy as Typhoon Shanshan shut down all of Toyota’s Japanese plants until Friday, and several of Daihatsu’s, adding to the troubles the world’s largest automaker is already facing back home.

Toyota has been dealing with the aftermath of multiple vehicle scandals at some of its subsidiaries in December, and then more recently in June at the carmaker itself.

The company was dealt its first-ever corrective order by the Japanese government last month over the improper certification of some models, forcing it to suspend shipments.

Japanese public broadcaster NHK reported earlier this month that Toyota revised down its annual global production outlook from 10.3 million units to 9.8 million units because of the scandals.

Honda Motor Co.’s sales, meanwhile, fell about 4% from July 2023 to 302,625 units as strong demand for its hybrids in the US was offset by a more than 40% decline in deliveries in China, the company said in a statement. Production meanwhile rose 5%.

Global sales and output for Nissan Motor Co. decreased 1.3% and 12.5%, respectively, the company said.