- Japanese OEM China Sales declined across major manufacturers.
- Hybrid and electric vehicles gained preference amid market weakness.
Three major Japanese automakers released their June 2026 sales performance for the Chinese market, with all three reporting year-over-year declines. Weak demand for internal combustion engine (ICE) vehicles, changing consumer preferences, and continued market challenges weighed on overall performance. However, the growing adoption of hybrid vehicles (HVs), electric vehicles (EVs), and new energy vehicles (NEVs) continued to influence purchasing decisions, while some manufacturers accelerated their export strategies to reduce dependence on the domestic Chinese market.
Toyota Reports Fifth Consecutive Monthly Sales Decline in China
Toyota reported sales of 115,300 vehicles in China during June 2026, representing a 26.9% year-over-year decline and marking the company's fifth straight month of lower sales. Year-to-date sales reached 694,700 units, down 17.1% from the same period last year. GAC Toyota delivered 60,359 units in June, a decline of 11.4%, while cumulative sales reached 341,107 units, down 6.3%. Year-to-date sales of the GAC Toyota bZ brand totaled 52,202 units. FAW Toyota sold 44,000 units during June, down 39.1%, with cumulative sales declining 27.4% to 274,100 units.
Toyota attributed the continued decline in ICE vehicle sales to rising fuel prices resulting from heightened tensions in the Middle East. According to the company, customers are increasingly choosing hybrid and electric vehicles because they are less affected by fuel price volatility.
Honda Faces Twenty-Ninth Consecutive Month of Declining Sales
Honda announced on July 6 that its June 2026 sales in China totaled 32,474 units, a year-over-year decrease of 44.5% and its twenty-ninth consecutive monthly decline. Year-to-date sales dropped 34.7% to 205,818 units. Dongfeng Honda accounted for 19,094 units during June.
Honda stated that it did not introduce new vehicle models while the market share of ICE vehicles continued to shrink. The company also highlighted weak domestic demand in China and said there are still no clear indications of a market recovery, suggesting that difficult business conditions are expected to continue.
Nissan Expands Export Strategy While China Sales Decline
Nissan reported June 2026 sales of 37,591 vehicles in China, representing a 29.4% year-over-year decline and its third consecutive month of falling sales. Year-to-date sales stood at 237,018 units, down 15.0%. Dongfeng Nissan sold 32,124 vehicles during June, down 33.7%, while cumulative sales reached 206,736 units, a decline of 19.4%. New energy vehicles under the N Series contributed 30% of Dongfeng Nissan's June sales. Zhengzhou Nissan recorded 5,467 units, increasing 13.7% year over year.
The battery-electric ZNA RICH pickup entered the market in Hainan during June. Nissan also began exporting vehicles manufactured in China, with the first shipment destined for Mexico. The company plans to export the N7 battery-electric sedan and Frontier Pro pickup to the Philippines, while future export expansion will include the Middle East and additional international markets.
June 2026 China Sales Performance of Japanese Automakers
| OEM | June 2026 Sales | Y/Y Change | YTD Sales | YTD Change |
|---|---|---|---|---|
| Toyota | 115,300 | -26.9% | 694,700 | -17.1% |
| Honda | 32,474 | -44.5% | 205,818 | -34.7% |
| Nissan | 37,591 | -29.4% | 237,018 | -15.0% |
The June 2026 sales figures demonstrate that Japanese automakers continue to face significant challenges in China as demand for ICE vehicles weakens and competition in electrified mobility intensifies. While Toyota, Honda, and Nissan all recorded lower sales volumes, Nissan is simultaneously strengthening its export strategy by supplying vehicles built in China to international markets. Meanwhile, growing consumer interest in hybrid, electric, and new energy vehicles continues to reshape purchasing patterns and influence product strategies across the industry.
Frequently Asked Questions
Why did Japanese automakers report lower sales in China during June 2026?
Japanese automakers experienced weaker June 2026 sales because demand for internal combustion engine vehicles continued to decline while consumers increasingly preferred hybrid and electric vehicles. Toyota cited higher fuel prices linked to Middle East tensions as a contributing factor. Honda highlighted the absence of timely new model launches and weak domestic demand, while Nissan continued to face declining sales despite stronger performance in selected vehicle segments and increased focus on exports from China to overseas markets.
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