Toyota’s global sales plummeted by more than 5 percent last month, largely due to the ripple effect from BYD’s aggressive pricing moves in key regions such as China, Southeast Asia, and even Japan.
Toyota, along with its luxury brand Lexus, sold a total of 853,082 vehicles in the most recent period, marking a 5.1 percent decline compared to June 2023 figures. Despite buoyant demand in North America and Europe, the industry faced headwinds in Japan and China, resulting in a decline in overall sales.
Japanese automaker’s global gross sales have declined by 0.9% compared to the same period in 2023, as of the first half of 2024.
In the first half of the year, following the recall of the Prius, Toyota experienced a modest decline in its North American sales, with a mere -1.6% decrease in vehicle deliveries. Meanwhile, gross sales surged by a remarkable 14.6% through the first half of the year.
Despite a positive trend in Europe (+2.7%) and Latin America (+6.5%), Toyota’s gross sales have taken a significant hit in Asia, its largest market. In the final month, Toyota’s Asian gross sales plummeted by 7.2%, totalling 269,317 units, with significant declines of 13% and 11% recorded in China and Thailand respectively.
Toyota attributed the decline to a challenging market environment and heightened competition for value.
Toyota’s global gross sales surged to a new high in the first half of 2024, as BYD’s aggressive electric vehicle (EV) pricing strategy sparked a buying frenzy.
Toyota’s global sales slump continued in the first half of 2024, with significant declines recorded in key markets: a 10.8% drop in China, 10% in Indonesia, and a steeper 15% decline in Thailand.
Toyota’s Asian sales slump amid fierce competition from Chinese electric vehicle manufacturers like BYD, which has been pushing prices down aggressively, thereby squeezing global carmakers out of the market.
Breaking records, BYD achieved a remarkable 341,658 new electric vehicle sales in the latest month, marking a significant 35% year-over-year surge. China’s leading electric vehicle manufacturer BYD acquired 145,179 all-electric vehicles, marking a 13% year-on-year surge. By the midpoint of 2024, BYD had acquired more than 726,000 electric vehicles (EVs), representing an impressive 18% year-over-year increase from the previous 12-month period.
As BYD’s CEO declared war on gas-powered vehicles just a year ago, the Chinese giant has since launched an aggressive assault on the market with deep price cuts, leaving traditional automakers struggling to keep pace.
The BYD Seagull, a budget-friendly electric vehicle, starts at an affordable $9,700 (or 69,800 yuan) in its Chinese market launch. In foreign markets, such as Brazil, prices typically start around $20,000.
As affordable electric vehicles (EVs), such as the Dolphin and Atto 3, gain traction globally, BYD is rapidly expanding its market presence in key regions like Thailand, Indonesia, and Latin America.
Recently, BYD introduced its inaugural electric multi-purpose vehicle (MPV) in Indonesia. As the electric vehicle market gains momentum, BYD’s M6 debuts at a price point under $25,000.
China’s BYD is steadily increasing its market share within Toyota’s traditional stronghold. According to the Japan Vehicle Importers Association, Japanese electric vehicle imports surged by 17 percent in the first half of 2024, representing nearly one-tenth of all vehicles shipped to the country during that period.
With passenger automobile imports skyrocketing by 184%, BYD took the lead in the market. Last month, Chinese automaker BYD unveiled its third electric vehicle, the Seal, a rival to Tesla’s Model 3, with a starting price of $33,100 (approximately ¥5.28 million) in Japan.
BYD’s affordable electric offerings, the Atto 3 and Dolphin, debut at a competitive starting price of $30,000 ($4.4 million) for the former and $24,500 ($3.63 million) for the latter. The Chinese electric vehicle (EV) maker has risen to become the world’s leading manufacturer of its kind, leaving many established brands in its wake. Rising to 14th place among Japan’s top auto importers, a notable climb from its previous ranking of 19 just last year.
Electrek’s Take
Can electric vehicles really make a company the champion of sales? According to a recent report by Business Insider, BYD is poised to reclaim its position as the world’s leading electric vehicle manufacturer, surpassing Tesla, due to its ongoing growth trajectory in 2024.
Although BYD is most renowned for its affordable electric vehicles, the company is expanding into almost every segment with new car launches.
BYD is set to unveil the Sea Lion 07, a mid-size electric SUV inspired by the Tesla Model Y, as well as its inaugural pickup truck, the Shark PHEV, and a range of luxury electric vehicles.
By 2024, BYD aims to nearly quadruple its retail presence in Japan. And that’s solely the beginning. As BYD continues to expand its global reach, the company is building large-scale facilities in countries such as Thailand, Turkey, and Mexico, among others.
Will BYD’s relentless pursuit of market share prompt Toyota to reconsider its position in the electric vehicle landscape? Or will Toyota catch on? Toyota’s subsidiary reportedly plans to establish a state-of-the-art electric vehicle (EV) battery factory on Japan’s “Silicon Island” to supply batteries for its luxury brand, Lexus, as well as meet growing demand from international markets.
