Toyota Motor reported a 4.7% drop in global sales to 5.162m vehicles in the first half of 2024 with volume held back by prolonged production stoppages at its Daihatsu small car subsidiary following the safety test rigging scandal which came to light at the end of last year.

Nonetheless, Japan’s leading automotive group, which includes Daihatsu and Hino, retained its title as the world’s largest vehicle producer ahead of Volkswagen for the fifth straight year.

Toyota and Lexus reported a 0.9% drop in H1 global sales to 4.89m units with strong sales in North America and Europe more than offset by weak demand in Asia, including in China and south east Asia.

Exports from Japan rose 3.7% to 911,446 units with the weak yen helping to drive up demand in some key markets.

Global sales of electrified vehicles rose 22% to 2.093m with hybrids (HEVs) growing 20% to 1.946m; plug-in hybrids (PHEVs) 73,000 (+35%); battery electric vehicles (BEVs) 73,000 (+58%); and fuel cell electric vehicles (FCEVs) 1,134 units (-52%).

Some Toyota models were also affected by Daihatsu’s test rigging scandals while sales were also held back by the recent global recall of the Prius.

Daihatsu H1 global sales fell 49% to 210,910 units, due mainly to the production stops in Japan. The company was expected to narrow these losses in the second half of the year after it was allowed to resume full production in Japan in May.

Hino global sales fell 11% to 59,273 units year to date, reflecting mainly weak overseas demand particularly in Asia. Domestic sales increased 3.1% to 20,229 units.