Toyota and Honda Both Saw Sharp Declines in China Sales, January-April

[Canada's Unifor Union Targets Ford as Top Priority for 2026 Contract Negotiations] Unifor, Canada's largest private-sector union, has locked in Ford Motor as its primary negotiating target, prioritizing a new collective labor agreement with the automaker, one of the Detroit Big Three. Negotiations are set to officially begin on June 22. If a new agreement is reached with Ford, it will establish a benchmark pattern for subsequent negotiations with Stellantis and General Motors. Just days after negotiations begin, on July 1, the United States-Mexico-Canada Agreement (USMCA) will undergo its mandatory joint review, in which the three countries will need to decide whether to extend the agreement for 16 years.

[Toyota's April Sales in China Fell 25% YoY] Toyota's April sales in China fell 25% YoY to 106,500 units. Affected by geopolitical tensions driving up international oil prices, Toyota's internal combustion engine vehicle sales declined significantly. In addition, many consumers chose to delay their car purchase plans to wait for Labour Day holiday promotional events. FAW Toyota, Toyota's joint venture with China FAW Group, saw April sales drop 38% YoY to 40,000 units, while GAC Toyota, its joint venture with GAC Group, saw sales decline 10% YoY to 54,100 units. Toyota's luxury brand Lexus saw sales fall 29% YoY, selling only 11,200 units. In contrast, Toyota's EV sales in China performed strongly, surging 88% YoY to 17,700 units.

[Honda's April Sales in China Fell 48% YoY] Amid intensifying competition from Chinese domestic automakers and rising fuel prices dampening consumers' car purchase willingness, Honda's auto sales in China saw a sharp decline in April. Honda announced that its April new car sales in China were 22,595 units, down 48% YoY, with flagship car models such as the Accord seeing stagnant sales. GAC Honda, a joint venture between Honda and GAC Group, saw April sales plunge 64% YoY to 8,384 units; Dongfeng Honda, a joint venture with Dongfeng Group, saw sales decline 31% YoY to 14,211 units.