WionDrive News Desk 
Japanese automaker Toyota Motor witnessed 7% drop in its global sales in February from a year earlier due to heavy decline in China on the occasion of Lunar Year holidays and a slump in Japan after a safety test scandal at its small car unit. Sales in the world’s biggest auto market, China, tumbled 36% as the week-long Lunar New Year holiday took place in February this year while last year it occurred in January.
Additionally, China’s auto market is engaged in a cut-throat price war among rivals and Toyota has said sales were affected due to this. For January and February combined, however, the sales decline in China was a much milder 0.7%, although that was still less than a 6.4% rise in passenger vehicle sales sector-wide, according to data from an auto industry association.
In the US, Toyota’s sales for February surged 16% and those in Europe gained 14% while sales in Japan tumbled by a third. Domestic sales were hit by production stoppages at Daihatsu which also makes some Toyota brand cars and due to the reputational fallout from the scandal even though Daihatsu brand vehicles are not included in Toyota’s global sales count. The small-car unit said almost a year ago that it had rigged collision safety tests.
Last month, the president and chairman of Daihatsu Motor stepped down almost a year after the compact car maker said that it rigged the collision safety-tests. This was one of the most drastic changes that happened at Daihatsu so far this year as Toyota seeks to maintain the brand’s reputation as one of Japan’s most iconic compact car makers.
Toyota’s sales in Indonesia and Thailand also saw double-digit declines as almost two-fifths of the vehicles sold by the world’s largest automaker in February were gasoline-electric hybrids. Global sales figures are comprised of Toyota brand cars and those sold under its luxury Lexus brand. Daihatsu posts separate figures, showing its worldwide sales plunged 66% in February.
