Toyota (TM.US) global sales edged down slightly in September, with sales in China declining for the eighth consecutive month.

According to Golden Ten Data APP, Toyota (TM.US) saw a decline in sales in September, mainly due to continued weakness in sales in China. In a statement released on Thursday, Toyota said that global sales, including its subsidiary Daihatsu, fell by 2.9% year-on-year to 921,847 vehicles, while production decreased by 4.5% to 989,168 vehicles.

The world’s largest automaker is facing challenges in the Chinese market. Strong demand for new models and hybrid vehicles has helped Toyota maintain or even increase sales in Japan, Europe, and the United States. However, Toyota's sales in China have declined for eight consecutive months, exacerbating the overall downward trend in its sales.

Traditional automakers have been struggling to cope with competition from Chinese brands. Chinese brands are continuously launching electric vehicles to meet the needs of customers seeking the latest features and in-car software.

In September, Toyota and the Lexus brand saw a 20% drop in sales in China. Sales in the Japanese market edged up by 1.8%, while North American sales grew by 8.6%, largely thanks to renewed popularity of hybrid models—a technology pioneered by this Japanese automaker.

In August this year, Toyota raised its profit forecast for the fiscal year ending March 2027 to 3.4 trillion yen, a revision attributed to strong demand for hybrid models in the US market and the favorable impact of exchange rates. Previously, the company had expected a rare decline in profit for the fiscal year due to higher raw material costs driven by conflict in the Middle East.

Toyota also said that sales of hybrid vehicles are expected to exceed 5 million for the first time in 2026.