The hybrid version of the RAV4 is one of the new vehicles in Toyota Motor's fleet. (Photo by Azusa Kawakami)NAGOYA, Japan (Kyodo) -- Toyota Motor on Thursday retained top spot in first-half global sales in 2026 for the seventh straight year, with its group companies selling 5.39 million vehicles worldwide to outperform German rival Volkswagen.Global sales in the January-June period, however, fell 2.8% from a year earlier, marking the first year-on-year decline in two years, reflecting sluggish demand in China hit by higher gasoline prices amid tensions in the Middle East.Volkswagen sold roughly 4.13 million units in the same period.With logistics disruptions stemming from the Middle East situation also weighing on operations, the Toyota group's global output edged down 0.3% to 5.51 million vehicles in the first half. Toyota alone saw its exports from Japan to the Middle East drop 36% to 104,093 cars.The group's overseas sales dropped 4.5% to 4.30 million vehicles, while domestic sales totaled 1.10 million units, up 4.4%, driven by strong sales of the new bZ4X electric vehicle.Toyota's global sales of electrified vehicles, led by hybrid vehicles, grew 9.1% to 2.71 million cars, while EV sales jumped about 2.4-fold to 193,172 vehicles, both marking record highs for the first half.By country and region, sales in China slid 17.1% to 694,670 units, while the Middle East saw a 21.6% drop in sales to 218,855 cars. Sales in North America edged up 0.9% to 1.45 million vehicles, helped by solid demand for hybrid vehicles.In June alone, Toyota group's global sales slipped 1.1% to 926,688 units, while global production climbed 2.2% to 984,408 cars.Although the group had included Hino Motors as its subsidiary, as with Daihatsu Motor until March, Hino is no longer Toyota's consolidated subsidiary following its merger with Mitsubishi Fuso Truck and Bus in April.