Toyota’s global sales fall 3% in September

Toyota and Waymo are advancing their autonomous driving collaboration, testing a fleet of Toyota bZ4X vehicles in Japan in 2027, with plans to expand to the UK and other markets. The partnership aims to scale safety-validated Level 4 autonomous vehicles, with Toyota manufacturing the vehicles in Japan. Both companies highlight the potential for reducing human-error accidents and improving road safety. Waymo claims its technology is up to 20x safer than human drivers in areas it operates.

Volkswagen reported a $6.6B operating loss in Q3 2026, its worst in over a decade, due to an $8.9B writedown on its Porsche stake. The company plans to cut 100,000 jobs and close up to four German plants. Hyundai also cut its 2026 sales and profit forecasts due to weak global demand and production issues. Toyota saw global sales and production decline for the third straight month, with significant drops in China and the Middle East.

Toyota reported a 2.2% drop in global sales to 860,107 vehicles and a 3.2% decline in production to 889,079 vehicles in September, marking three consecutive months of decreases. Declines were driven by a 19.7% drop in China and a 29.8% slump in the Middle East, while sales rose 1.8% in Japan and 8.4% in the US. Production fell 18.6% in China and 2.9% in the US, but increased 5.8% in Japan.

Toyota's U.S.-listed shares fell 1.6% on Wednesday, with investors considering tariffs, yen fluctuations, and weak China sales ahead of its half-year results. The company's operating profit declined 9% in Q1, its fifth consecutive drop, due to regional sales challenges. Despite this, Toyota raised its full-year operating profit forecast by 13% to 3.4 trillion yen, citing a weaker yen. The company also announced a share buyback of up to 1 trillion yen.

Toyota secured approval for a $1.341 billion investment in Argentina to build a hybrid pickup truck without plug-in charging. The plant will produce full hybrid electric vehicles (HEVs) for regional export, with 53% of the investment allocated to local suppliers. The project aims to address logistical challenges in emerging markets and generate $1.280 billion in annual export revenue. The exact model (Hilux or Tacoma-based) remains unspecified.

Toyota confirmed plans to build a non-plug-in full hybrid (HEV) pickup truck in Argentina, investing $1.3B. The new plant will also produce an SUV variant. The project includes $400M for updating the Hilux. Toyota chose HEV over plug-in due to regional infrastructure and customer needs. The plant aims to export 70% of production, generating $1.28B in annual export revenue.