STORY: Japanese automakers Toyota and Honda both reported slipping quarterly profits Wednesday.
Both companies cited falling sales and competition from China.
Toyota’s profits from July to September this year were 20% lower than the same time last year, at just over $7.5 billion.
That was roughly what analysts expected, but marked the firm’s first quarterly drop in two years.
The result comes after stalled U.S. production for two SUV models due to an airbag issue.
Its income in China also fell in the first half of the financial year, hit by marketing costs competing against Chinese brands.
Honda, meanwhile, missed analysts’ expectations with its July to September quarter.
It reported a 15% drop in profits to just under $1.7 billion – its first year-on-year profit decline in seven quarters.
Among its global vehicles sales, it logged a hefty 29% drop in China, which was its biggest sales and production market from 2020 until 2022.
Consumers in China have rapidly shifted to lower-priced, Chinese branded electric vehicles and hybrids.
Honda fared better in the U.S., though, reporting a 9% rise in vehicle sales over the first nine months of 2024.
