Japanese Automakers Are Struggling As Their Production In China Plummets

NHTSA announced recalls for millions of vehicles, including models from Ford, Toyota, GM, BMW, and Chrysler, due to safety issues like power loss, seat defects, and fire hazards. Commercial truck and RV manufacturers like PACCAR, Daimler, and Heartland are also affected. Owners will receive free repairs.

Tata Motors reported a 23% YoY increase in passenger vehicle sales to 75,426 units in October 2026, with domestic sales up 21% and exports up 852%. Hyundai achieved record monthly sales of 82,299 units, up 17.7% YoY. Mahindra saw a 2% increase in SUV sales to 73,338 units and a 9% rise in total automotive sales. Maruti Suzuki crossed 50,000 EV exports and aims for 2.5 lakh wholesale dispatches in October.

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.

Toyota reported a 2.9% year-on-year decline in global sales to 921,847 units in September 2026. Overseas sales fell 3.5%, impacted by Middle East conflict and competition. Year-to-date sales dropped 3.0% to 8,029,746 units. Electrified vehicle sales rose 11%, with BEVs up 127%. Daihatsu's sales increased 4.4% year-to-date, according to the company.

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.