Toyota’s sales in Japan and China are struggling to shake off a series of challenges, including rising competition from electric-vehicle brands, domestic scandals and recalls abroad. That's as strong demand for hybrid vehicles is seen in North America.

Global production — including that of subsidiaries Daihatsu Motor and Hino Motors — fell in September by 8.5% from the previous year to 949,583 units, the company said Wednesday. Sales in the same month fell 8% to 923,311 units.

Toyota’s sales in Japan shrank nearly 17% this year between January and September, largely due to domestic recalls of the carmaker’s Prius hybrid vehicle that lasted more than two months, along with the delayed effects of various scandals involving falsified vehicle safety certifications.

Output in China fell almost 18% during the same period thanks to intense competition from BYD and other local brands.

The world’s top carmaker continues to lose ground in the biggest passenger-car market, where domestic firms dominate in a field saturated by battery electric vehicles.

Toyota’s exports fell 34.9% in China, and 34.3% in the United States, though they have risen globally by 10.1% throughout the calendar year so far.

While European Union and U.S. tariffs on imported Chinese electric vehicles and new European emission regulations threaten to change the playing field, it remains unclear which companies will emerge as the greatest beneficiaries.

Honda’s global sales in September fell 14.8% to 307,426 units, the sixth straight month of decline. Production was down 20%.

Nissan, meanwhile, sold 288,511 units the same month, a 4.2% drop following a half-year decline. Output fell 9.8% to 273,342 units.