Toyota Motor Stock Jumps In Tokyo Trading As Hybrid Demand Powers 3rd Straight Global Sales Record

Toyota Motor Corp. reported its third consecutive monthly global sales record in May, as strong demand for hybrid vehicles in its three main markets, the U.S., Japan and China, drove purchases. 

At the time of writing, Tokyo-listed shares of Toyota Motor Corp were up 3.4% at 2,539 yen.

Meanwhile, Toyota Motor Corp’s OTC-listed shares closed 0.9% higher at $170.63 on Thursday and extended gains slightly to $170.95 in after-hours trading.

Sales by Toyota and its two subsidiaries, Daihatsu Motor and Hino Motors, increased 8% from the previous year to 955,532 units worldwide. 

Global production in May rose 3.1% to 906,984 vehicles, supported by higher output in China and North America, which more than offset a fall in Japan.

May sales in North America surged 11% due to strong demand for Camry and RAV4 models. 

In China, sales increased by 7% as the government provided incentives for the purchase of hybrid electric vehicles. Sales in Japan rose 4%.

Toyota said that it will raise U.S. prices by more than $200 on some models starting next month to account for changing market conditions and possible tariff pressures, part of what it called a regular pricing adjustment.

The move comes as automakers seek ways to mitigate the potential financial impact of auto tariffs in the U.S. Toyota has already flagged a 180 billion yen (approximately $1.2 billion) impact from tariffs in April and May. 

Meanwhile, domestic rivals Nissan Motor and Honda Motor have each forecast around $3 billion in related costs. 

Subaru and Mazda Motor have refrained from issuing profit guidance for the current fiscal year due to heightened uncertainty.

The rise in sales comes amid support from Japan’s top trade negotiator, Ryosei Akazawa, who expressed strong opposition to a suggested 25% tariff on imported automobiles. 

He said that Japanese automakers currently produce more than 3.3 million vehicles in the United States each year, which is more than twice the amount they export to the country.

Separately, Toyota Chairman Akio Toyoda was re-elected with 97% of the votes at the company’s annual shareholder meeting earlier this month. 

The high percentage represented a recovery from the previous years, indicating regained investor confidence in the company’s results, despite the ongoing headwinds it has faced in the international market.

Toyota Motor’s Tokyo-listed shares have declined 15.7% so far in 2025, while its U.S.-listed stock has lost over 11%. 

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