AUSTIN — Toyota Motor Corp. will pull out of Chinese carmaker China’s largest auto market in 2019, the automaker said Tuesday, a decision that will leave a huge gap in the nation’s market.
In 2019, China will have more than 2.5 trillion yuan ($3.2 trillion) in global sales, or more than 9% of the world’s auto sales.
That’s equivalent to the market’s entire gross domestic product, according to a report from the Asia Pacific Economic Cooperation group.
The remaining market is China, with around 6% of global sales.
Toyota said it was “committed to supporting our U.S. dealers and our global customers.”
Toyota’s decision is a significant blow to Chinese automakers that have relied on the country for their livelihoods.
In 2019, Ford Motor Co. and BMW AG will each be selling more than 50,000 vehicles in China, according in the report.
China has a strong auto industry that has helped fuel the country’s economic growth, but the country has struggled to diversify its economy and diversify the economy is a major source of demand for foreign-made cars.
It is also home to more than 3,000 U.N. peacekeeping missions, including a U.K. unit, and China’s most populous city, Beijing.
China’s manufacturing sector, with a large share of foreign-based vehicles, accounted for more than 10% of China’s gross domestic products in 2019.
China currently has about 20 automakers, but Toyota, which makes the Prius SUV, has decided to stop selling its U.V. Hybrid hybrid and will sell its plug-in hybrid vehicle in 2019 instead.