Toyota Motor NYSE:TM reported its fourth straight monthly sales decline in May, as weakness in China and the Middle East outweighed stronger demand at home in Japan.
Global sales fell 7.2% year over year to 834,279 vehicles. Overseas sales dropped 9.6%, while sales in Japan rose 11.1%, helped by demand for models such as the RAV4 and bZ4X.
China was the biggest drag, with sales down 31.7% amid tougher market conditions and rising petrol prices. Middle East sales fell even harder, dropping 38.6%. In the U.S., Toyota's largest market, sales slipped 0.6%.
Production also weakened. Global output fell 5.5% from a year earlier, with declines of 3.8% in the U.S. and 13.3% in Asia offsetting growth in Japan. Toyota said production fell partly because some sites had fewer operating days.
the report shows Toyota is still facing pressure outside Japan, especially in highly competitive and price-sensitive markets. The next thing to watch is whether China demand stabilizes.