TOKYO (Reuters) – Toyota Motor (NYSE:)’s international gross sales dropped 7% in February from a yr earlier, harm by a heavy decline in China resulting from Lunar Yr holidays and a hunch in Japan after a security take a look at scandal at its small automobile unit.

Gross sales in China – the world’s largest auto market – tumbled 36%. This yr the week-long Lunar New Yr vacation happened in February whereas final yr it occurred in January.

China’s auto market can be engaged in a cut-throat worth struggle and Toyota stated gross sales have been affected by fierce competitors.

For January and February mixed, nevertheless, the gross sales decline in China was a a lot milder 0.7%, though that was nonetheless lower than a 6.4% rise in passenger car gross sales sector-wide, in keeping with information from an auto trade affiliation.

Whereas Toyota’s U.S. gross sales for February surged 16% and people in Europe gained 14%, Japan gross sales tumbled by a 3rd. Home gross sales have been hit by manufacturing stoppages at Daihatsu which additionally makes some Toyota model vehicles and because of the reputational fallout from the scandal although Daihatsu model automobiles aren’t included in Toyota’s international gross sales rely.

The small-car unit stated nearly a yr in the past that it had rigged collision security checks.

Toyota’s gross sales in Indonesia and Thailand additionally noticed double-digit declines.

Nearly two-fifths of the automobiles offered by the world’s largest automaker in February have been gasoline-electric hybrids.

World gross sales figures are comprised of Toyota model vehicles and people offered below its luxurious Lexus model. Separate figures for Daihatsu confirmed its worldwide gross sales plunged 66% in February.

Toyota’s international output for February shrank 2.6% to 737,178 automobiles.