Toyota Australia has pointed to ongoing supply constraints on key models as the main reason for its weaker sales performance through the first five months of 2026.

The company delivered 76,017 vehicles year to date, marking a 24.6 per cent decline compared with the same period in 2025. Its share of the overall new vehicle market slipped from 20.7 per cent to 16.0 per cent as a result.

Vice president of sales, marketing and franchise operations John Pappas said the softer result was anticipated because of restricted availability of the HiLux and RAV4, the brand's two strongest sellers.

"We knew coming out of last year that we would begin this year with a noticeable drop relative to the prior period," Mr Pappas noted.

"HiLux output was not at full capacity during the opening quarter, and the updated RAV4 launch slipped from August last year until April this year for several reasons.

"Those two lines account for our highest volumes, so we expected the first quarter and May to show significant declines, and that is precisely what occurred. The issue has been tied chiefly to production volumes and inventory levels."

RAV4 registrations have fallen 47.1 per cent so far this year, while HiLux sales are 13.2 per cent lower.

Even with the slow start, Toyota Australia remains on track for 230,000 total deliveries by year end, a figure that would represent a 4.1 per cent reduction from 2025.

"We face a substantial second half in order to reach the 230,000 target," Mr Pappas said. "It would mark our strongest six month performance on record."

To support that goal the company has arranged two extra shipments bringing in 30,000 additional vehicles. Demand remains strong, with waiting times for popular models stretching between three and six months.

"Global production schedules are set centrally," Mr Pappas explained. "We continue to press for greater allocation by highlighting local wait times and demonstrating clear demand levels to our colleagues in Japan."

"Toyota Motor Corporation has provided extra output for Australia, yet meeting worldwide demand remains challenging."

Looking ahead, the brand anticipates steadier volumes in 2027 while navigating increased competition from Chinese manufacturers and broader market pressures.

"We expect sustainable volumes next year and our ongoing plan includes measured growth," Mr Pappas added.

Toyota has led Australian sales every year since 2003 and posted an all time record of 241,296 units in 2025, more than twice the volume of the nearest rival.

Worldwide, the company has trimmed production targets because of Middle East tensions that have lifted fuel prices and softened demand in several regions.

Reports indicate Toyota informed suppliers of an 83,000 unit output reduction by November, with most of the cuts aimed at Middle Eastern markets.