According to media reports, Toyota Motor Corporation achieved record-breaking global sales for the third straight month in May, driven by strong demand for hybrid vehicles in the United States, Japan, and China. This success comes despite the mounting pressure faced by global automakers from potential losses due to U.S. President Donald Trump's proposed tariffs on imported vehicles.
Data released by Toyota on June 27 shows that, including its subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., the company sold 955,532 vehicles worldwide in May-an increase of 7.5% year-on-year. For the first five months of 2025, cumulative global sales reached 4,607,634 units, up 8.4% year-on-year.
Toyota's global production in May totaled 906,984 vehicles, representing a 0.8% increase year-on-year. While production increased in China and North America, the scaling back of operations in Japan kept total global output largely stable. From January to May, Toyota produced 4,559,584 vehicles globally, up 9.1% compared to the same period last year.
Regional Performance Highlights:
Japan: Toyota and Lexus sales in Japan rose by over 4% in May to 106,586 units. The rebound is attributed to the company's recovery from last year's certification and recall issues, along with strong demand for new models such as the Land Cruiser 250 and Crown Estate.
Asia (excluding Japan): Toyota sold 271,093 vehicles across the rest of Asia in May, marking a 5.6% increase year-on-year. In China, sales rose by 6.8% to 149,887 units. Despite ongoing shifts toward new energy vehicles (NEVs), intensified price competition, and aggressive promotional campaigns, Toyota's hybrid electric vehicles (HEVs) continued to perform well, boosted by government subsidy programs.
North America: Sales surged 11% to 280,928 units in May, with the U.S. market accounting for 240,176 units-also an 11% increase. This growth was fueled by strong demand and the continued popularity of models like the Camry and RAV4.
Europe: Toyota's sales reached 99,884 units in Europe, a 3.4% year-on-year increase. Continued strong performance of hybrid models such as the Yaris and Yaris Cross contributed significantly to growth in the region.
A Toyota spokesperson recently stated that the company plans to increase prices by more than $200 on select models sold in the U.S. starting next month, citing market conditions and competition. The company emphasized this as part of its routine pricing strategy. Mitsubishi Motors has already announced price hikes on three of its models in the U.S. as automakers seek to minimize the impact of escalating U.S.-China trade tensions.
Japan's major automakers are heavily reliant on the U.S. market. If trade negotiations between Japan and the United States fail to lower auto tariffs, Japanese carmakers could face losses in the billions of dollars.
Toyota had previously revealed that tariffs alone caused an estimated loss of ¥180 billion (approximately $1.2 billion) during April and May. Nissan and Honda are each projecting losses of up to $3 billion, while Subaru and Mazda have yet to announce their profit forecasts for the fiscal year ending March 2026 due to tariff-related uncertainties.
