Toyota Motor’s year is off to a slow but promising start after stagnant sales abroad were offset by a rebound in Japan.
Global sales, including that of subsidiaries Daihatsu Motor and Hino Motors, rose 2% from a year ago to 846,744 units, a record for the month of January, the company said Thursday.
Production climbed 12% to 885,346 units.
Despite unease in major markets — forthcoming tariffs in the US, intense competition in China and a demand slump in Japan — and a dip in quarterly profit, Toyota raised its annual profit guidance for the fiscal year ending in March.
As deliveries bounce back in Japan, the carmaker is finally beginning to show signs of recovery after a series of regulatory scandals and major recalls abroad last year forced it to dial back production.
Toyota delivered 10.8 million vehicles in 2024, a drop from the previous year but still enough to beat Volkswagen and protect its title as the world’s biggest carmaker for a fifth consecutive year.
It now forecasts operating income of ¥4.7 trillion (R578 billion), indicating that it expects activity to pick up later.
In January, Toyota’s group sales in Japan grew 26%, while sales of Toyota and Lexus brand cars rose 13%.
In China, the world’s biggest automobile market, sales of the two brands fell 14% as electric vehicle makers led by BYD tightened their grip.
Elsewhere, President Donald Trump’s proposed tariffs also spell trouble for Japanese carmakers, most of whom rely on the US as their biggest and most important market.
For others, January wasn’t quite as fruitful. Honda Motor said global sales fell 12% that month to 281,410 units, while production was down 20% to 269,168.
Nissan Motor saw monthly sales decline 6% to 251,136 units, as output fell 11% to 243,437.
In December, Honda offered Nissan a lifeline by agreeing to a tie-up that would’ve seen both brands combine under a single holding company.
Disagreements over expectations and power dynamics, however, caused negotiations to crumble. The deal was formally terminated in February.
Nissan is now preparing to replace Chief Executive Officer Makoto Uchida following another dismal quarter and the collapse of its deal with Honda, Bloomberg News reported Thursday, citing people familiar with the matter.
Together they could’ve competed on the global stage by creating what would have been one of the largest carmakers in the world, at least in theory.
Now that they’ve officially parted ways, Honda will have to find another way to gain the scale it needs to vie with industry heavyweights, and Nissan will need to seek out new partners as it looks to overcome yet another financial crisis.
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