Toyota's global sales fell 7.2 percent in May, marking the fourth consecutive monthly decline.
The automaker sold 834,729 vehicles worldwide, down from 849,306 in April and 897,871 in March.
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Including subsidiary Daihatsu, the global figure dropped 7.4 percent to 885,207 units, with production off 5.8 percent to 857,765.
China Leads the Decline
Sales across Asia fell 17.2 percent to 224,366 vehicles, with China as the main culprit.
Toyota's sales in China collapsed by 31.7 percent year-over-year to 102,299 units.
The automaker described a challenging market environment, pointing to stubbornly high gasoline prices in the country.
Through May, Toyota moved 579,419 vehicles in China, a 15 percent shortfall against the same period last year.
Other Asian markets also suffered: the Philippines slipped 13.4 percent, Malaysia dropped 18.2 percent, and Pakistan tumbled 24.7 percent.
In the Middle East, sales fell 38.6 percent to 29,568 units, partly due to the war in Iran.
Accounting chief Takanori Azuma said Toyota ships 500,000 to 600,000 vehicles annually to the region and expects just under half of that to take a hit.
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Oceania followed the same path, with sales down 26 percent to 21,061 vehicles, though May edged out April's 19,651.
North America and Europe Hold Steady
In North America, sales dropped just 0.1 percent year-over-year to 280,539, but increased from April's 261,979.
In the US specifically, sales slipped 0.6 percent to 238,800.
Toyota partly blamed the transition to the next-generation RAV4, even as demand for hybrids and EVs kept growing.
In Europe, sales fell 0.3 percent to 99,597 units.
Japan Defies the Trend
Strong demand in Toyota's home market bucked the global trend.
Japanese sales climbed 11.1 percent to 118,381 vehicles, though May still came in well below April's 149,924.
The financial impact is significant.
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Toyota now guides to 3 trillion yen ($18.8 billion) in operating income through March 2027, below estimates and last year's 3.8 trillion yen ($23.4 billion).
