Toyota Motor posted a second straight monthly drop in global vehicle sales in March 2026, hit by the RAV4 model changeover and softer demand in the Middle East.

Global sales for the month fell 7.3% from a year earlier to 897,871 vehicles.

Overseas sales declined 7.2% to 755,646 units, while sales in Japan were down 7.8% to 142,225.

In Japan, sales were influenced by the planned removal of the environmental performance-based vehicle tax.

When subsidiaries Daihatsu Motor and Hino Motors are included, worldwide sales totalled 983,126 units, a decrease of 5.8% year on year.

Even as sales weakened, Toyota’s overall global production increased 3.9% to 1.02 million vehicles.

In North America, March sales dropped 7.9% to 247,109 vehicles, with the US market down 8.5%.

Europe recorded a 5.6% decline to 113,875 units, while Asia fell 3.5% to 275,041.

In China, sales were down 8.0% amid competitive pressure.

India was an exception, with sales rising 26.6% to 36,458 vehicles.

The Middle East saw a steep 32.3% fall, while Africa posted a 1.7% increase.

Over the January to March 2026 period, Toyota’s global sales reached 2.46 million units, down 2.4% from the same period a year earlier.

Asia edged up 0.7%, helped by a 26.4% rise in India, while Japan registered a 6.4% decline.

Toyota also reported higher sales of electrified vehicles in March.

Total global electrified vehicle sales rose 7.6% year on year to 511,007 units.

Of that figure, 107,456 units were sold in Japan, up 9.5%, and 403,551 were sold in overseas markets, an increase of 7.1%.

By region, North America remained Toyota’s biggest overseas market for electrified vehicles in March, with sales of 135,894 units, up 4.1% from a year earlier.

For FY2026, Toyota said global sales increased 2.0% to 10.48 million vehicles.

Sales outside Japan rose 2.7% to 9 million units, while domestic sales fell 2.0% to 1.47 million.

North America recorded the strongest annual regional growth, with sales up 7.2% to 2.93 million vehicles.