Toyota Motor¡¯s sales have fallen again after declines in Japan and China put an end to a short-lived recovery, while production was disrupted by domestic scandals and recalls abroad.

Global output, including that of subsidiaries Daihatsu Motor and Hino Motors, dropped in August by 12.6% from a year earlier to 808,023 units, the company said Friday. Global sales fell 3.7% year on year following a 0.7% gain in July.

Toyota¡¯s sales fell more than 9% in Japan as it felt the delayed impact of recent regulatory scandals involving falsified vehicle safety certifications, which forced a number of the country¡¯s biggest carmakers to suspend production for affected models.

Its hybrid gas-electric cars saw renewed popularity as demand for electric vehicles plateaued, but a global slump in new car sales and intense competition in China are weighing on the world¡¯s biggest carmaker.

While certain models like its Granvia minivan are proving popular in China, Toyota¡¯s sales in the country fell 13.5% to 152,065 units in August, with an ongoing price war with the likes of BYD threatening to further squeeze its market share.

A downturn in EV demand has led some of the world¡¯s biggest automakers to scale back electrification goals. Last month, a Nikkei report said Toyota had slashed its 2026 annual sales goal from 1.5 million battery EVs, to 1 million.

Toyota sold 12,682 battery EVs in August, all but 119 of which were sold outside of Japan. Meanwhile, it sold 336,848 hybrids that month, a 22% increase from last year.

EV uptake has been slower in Japan than in other major markets due to the dominance of hybrids and gas-powered cars.

Earlier this week, Toyota expanded the size of its share buyback to ?1.2 trillion, adding ?200 billion to a stock-repurchase plan announced in May.

The carmaker¡¯s operating profit for the quarter that ended in June was ?1.31 trillion, 17% higher than a year earlier. Its hybrid variants are doing well in North America and the weak yen is helping it rake in revenue from abroad.