Full Breakdown
Toyota’s First-Half FY2026 Sales Slip Amid China Weakness, While BYD’s Workforce Swells
By Drooid · · How we work
In this breakdown
01
Core Event
Toyota Motor Corp. reported global sales for the first half of fiscal 2026 (April – September) fell 4.0% year-on-year to 5,059,014 units, the first decline in two years. The drop was driven by a 25.1% plunge in China to 684,903 units and a 35.1% fall in the Middle East to 187,802 units.
02
Background & Context
Since February 2026, Toyota’s monthly sales in China have stayed below the prior-year level, pressured by higher gasoline prices and intensified competition from EVs. Hybrid demand remained solid in North America, Europe and Japan, where sales rose modestly and hybrid and battery-electric volumes hit record first-half levels.
Visual evidence
Images from the story
03
Data & Statistics
Swipe across the table to see all columns.
| Region | H1 FY2026 Sales | YoY Change |
|---|---|---|
| China | 684,903 units | –25.1% |
| Middle East | 187,802 units | –35.1% |
| North America | 1,538,839 units | +1.8% |
| Europe | 594,913 units | +1.4% |
| Japan | 802,798 units | +12.4% |
| Global (Toyota + Lexus) | 5,059,014 units | –4.0% |
| Global Production | 4,895,406 vehicles | –2.0% |
Hybrid sales rose 8.4% to 2,368,674 units; battery-electric sales surged 2.2 × to 230,764 units, both first-half records.
BYD disclosed a headcount of more than 1.02 million employees, surpassing the combined workforces of Toyota, GM, Ford and Tesla. About 960,000 staff are in China, 60,000 abroad, and up to 120,000 are R&D engineers. BYD’s 2025 output of 4.6 million vehicles with 869,600 staff yields roughly 5.3 vehicles per worker, versus Toyota’s 29 vehicles per employee and Tesla’s 12.
04
Official Statements & Responses
Toyota said it will address the Chinese weakness by launching next-generation electric models and range-extended EVs (EREVs) under Lexus, with production slated for China next year. The automaker also noted strong hybrid demand in North America, led by the RAV4 and Camry.
Wang Chuanfu linked BYD’s workforce growth to vertical integration, citing control of batteries, chips and motors as a way to keep prices low, exemplified by a sub-$10,000 “Seagull” model.
05
Industry Comparison
Toyota’s high vehicle-per-employee ratio reflects a mature, efficiency-focused operation, while BYD’s labor-intensive model leverages abundant, low-cost Chinese factory labor to sustain vertical integration and rapid product diversification. BYD’s overseas sales now account for roughly 43% of its total volume, raising questions about the sustainability of its labor-heavy structure amid tariffs and local-production demands in Europe, Brazil and Mexico.
06
What’s Next
Toyota plans to roll out next-generation EVs and EREVs in China within the next fiscal year to recapture market share as gasoline prices stabilize and EV adoption accelerates. BYD’s expansion of overseas manufacturing—including new facilities in Thailand, Brazil and Hungary—signals a shift toward localized production, which could alter its labor efficiency metrics as a larger share of its workforce operates outside China.