Toyota, Honda Sales Hit By China EV Subsidy Pullback

Nov was a bumpy ride for global automakers. Sales and production took a hit, mostly thanks to China ending subsidies for electric and fuel-efficient cars. Even auto giants like Toyota, Honda, and Nissan felt the impact.

Toyota saw global sales slip 1.9% to 965,919 units and production fell 3.4% to 934,001 vehicles. China was the hardest hit with Toyota and Lexus sales dropping 12%, and production plunged 14% after trade-in incentives ran out in major cities, Bloomberg has reported.

Meanwhile, things looked better in Thailand with an increase of 15% and the US 9%, but Japan 9.7% and the UK 7.9% lagged. To make things worse, diplomatic tensions with China over Taiwan also cast a shadow, with Beijing warning its citizens about traveling to Japan.

Honda wasn’t spared either. Sales fell 15% globally to 273,681 cars, including a 34% drop in China, marking 22 straight months of decline. Production in North America tanked 61% due to semiconductor shortages, forcing temporary shutdowns in Japan and China over the holidays.

Nissan had a slightly better Nov. While global sales dipped 4.9%, production fell 4.2% to 257,008 units. China, however, was a bright spot with production jumped 22%, thanks to new EVs like the N6 and N7 capturing attention.

These numbers show just how fragile the global auto scene has become. Trade tensions, policy changes, and supply chain bottlenecks can quickly shift the balance. 

The EU’s easing of combustion engine restrictions may open doors for EVs, while in the US, Toyota is juggling potential tariffs and sending some American-made models back home to align with federal rules.