Toyota Motor Corporation has seen its global sales fall for the sixth straight month. In a statement released on Friday, the automaker reported that worldwide sales, which include those from its subsidiary Daihatsu, dropped 5.3% year-on-year in July to 912,683 units. Production also slipped by 1.4% to 934,953 vehicles during the same period.

The intense competition from local Chinese automakers is squeezing the market share of foreign players in the world's largest auto market. Adding to the strain, ongoing instability in the Middle East has disrupted vital supply chains and pushed up oil prices. These combined pressures are weighing heavily on global automakers. Since February, even Toyota has been losing ground in China, experiencing a steady erosion of its market presence.

In July, sales for the Toyota and Lexus brands in China plummeted by 24% year-on-year, as domestic brands aggressively roll out intelligent, battery-electric models that are capturing consumer interest. The Middle East market saw a drastic fall of nearly 45% in sales during the month. Conversely, the North American market remained largely flat, while sales in Japan and most of Europe grew, buoyed significantly by a resurgence in demand for petrol-electric hybrid vehicles.

Toyota exports approximately 500,000 to 600,000 vehicles annually to the Middle East. Earlier in May, the company indicated that it expects nearly half of those exports to be impacted by the prevailing market conditions.