Toyota Hits Record 5.5 Million Sales in 1H25 on Hybrid Demand

Toyota reported global sales of 5.52 million units in 1H25, setting a new record with a 7.4% year-over-year increase, driven by strong hybrid demand in key markets despite a 25% US import tariff on foreign vehicles. The total includes sales from subsidiaries Daihatsu and Hino Motors. Global production rose 8.8% to 5.5 million units, with domestic output increasing by nearly 20%.

In June alone, global sales grew 2.7% to 937,246 units, while production rose 7.7% to 963,455 units. The surge in sales was partially attributed to customers expediting purchases ahead of the US tariff enforcement. Toyota noted that market behavior earlier in the year “was shaped by last-minute buying before the 25% import tariff took effect.”

Despite the policy shift, Japan-based automakers may benefit from a recent July trade agreement that reduced the auto import tariff from 25% to 15%. This adjustment is particularly significant given the scale of Japan’s auto exports to the United States, which totaled US$40.8 billion in 2024. Additional volumes are shipped from Toyota’s production facilities in Canada and Mexico.

Toyota—which has one of the largest exposures to the US market among Japanese automakers—commented, “We expect US–Japan relations to improve and are calling for further tariff reductions.”

Hybrid vehicles remain a core strength for the company amid global market shifts. However, the rise of battery electric vehicle (BEV) manufacturers—including Tesla and China’s BYD—has intensified competition. Toyota has delivered approximately 82,000 BEVs so far this year, with the majority shipped to markets outside Japan.

In contrast, other Japanese automakers reported weaker performance. Honda saw an 8% decline in June sales, totaling 285,479 units, while production remained flat year over year. Nissan recorded a 5% drop in sales to 262,133 units for the same month.