Toyota Brings US Models to Japan Amid Global Sales Decline

Toyota Motor Corporation TM plans to introduce three U.S.-manufactured models — the Camry sedan, Highlander SUV, and Tundra pickup truck — into the Japanese market beginning in 2026. The initiative is expected to expand Toyota’s addressable customer base and contribute positively to Japan-U.S. trade relations.

Toyota is taking the necessary steps to ensure a smooth delivery of the three models to Japan and also plans to establish a new system in coordination with the Ministry of Land, Infrastructure, Transport and Tourism following bilateral negotiations. The announcement comes after the United States and Japan reached a tariff agreement under which the United States imposed a 15% tariff on vehicles and auto parts from Japan, while Japan agreed to allow U.S.-built vehicles to be sold domestically without additional testing.

Toyota plans to reintroduce the Camry sedan, produced at its Kentucky facility, and the Highlander SUV, manufactured at Toyota Motor Manufacturing Indiana, both previously available in Japan until 2023 and 2007, respectively. The Tundra pickup truck is produced at Toyota Motor Manufacturing Texas.

The Camry sedan combines comfort-oriented design with strong fuel efficiency, while the family-friendly Highlander offers a spacious interior and solid off-road capability. The Tundra pickup truck delivers substantial power and towing capacity, along with exceptional quality, durability, and reliability, and embodies American automotive culture, setting it apart from other models.

Toyota Motor displayed weaker numbers in November 2025, while planning to launch the vehicles in Japan next year. The global consolidated sales, including Daihatsu Motor and Hino Motors, declined 1.9% year over year to 965,919 units, marking the first annual sales decline in 11 months for Toyota.

The decline was largely attributable to softer performance in China, where sales declined 12.1% year over year to 154,465 vehicles, compounded by the expiration of subsidy programs, deferred consumer purchases, policy uncertainty, and ongoing model transitions, including updates to key nameplates, such as the RAV4.

However, Toyota’s Japan sales rose 1.5% year over year to 177,130 vehicles, supported by steady domestic demand. Sales outside Japan declined 2.6% year over year to 788,789 units, reflecting broader pressure across overseas markets. In North America, sales increased 2.7% year over year on steady demand, while European sales fell 5.3% year over year. Asia, excluding Japan and China, also recorded a mid-single-digit decline.

Combined Toyota and Lexus sales declined 2.2% year over year to 900,011 vehicles. In contrast, Daihatsu Motor reported an 8.3% year-over-year increase to 57,271 vehicles, while Hino Motors saw a sharp 20.8% year-over-year decline to 8,637 vehicles.

The global supply production declined 3.4% year over year to 934,001 vehicles, also marking the first production decline of 2025. Production cuts are considered to be the reason behind the sales decline, forcing the company to take a cautious approach until the demand normalizes.

Toyota and Lexus combined brand production declined 5.5% year over year to 821,723 vehicles, while Daihatsu’s production surged 20.5% year over year to 103,250 vehicles. Hino Motors output dropped 24.8% year over year to 9,028 vehicles.

Toyota Motor Corporation Price, Consensus and EPS Surprise

Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote

Zacks Rank & Key Picks

TM stock currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Mazda Motor (MZDAY) and Subaru Corporation (FUJHY), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for MZDAY’s fiscal 2026 and 2027 EPS has improved 6 cents and 3 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for FUJHY’s fiscal 2026 and 2027 EPS has improved 15 cents and 10 cents, respectively, in the past 60 days.

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