Toyota’s global output declines 0.6% in July due to a fierce pricing battle in China.

Toyota Motor Corp reported a 0.6% drop in global production in July, with 804,610 vehicles sold, marking the sixth consecutive month of decline. The smallest decline was attributed to solid domestic output.

Domestic production increased by 0.1% to 309,118 cars, compared to an 18.8% slide in June. Toyota restarted manufacturing the Prius in Japan in mid-June after a recall suspension in April.

Outsourcing production fell by 1.1% to 495,492 vehicles, with a 9.6% drop in China. Worldwide sales fell by 0.2% to 857,982 units, with sales falling in North America and China due to the popularity of locally made, affordable electric vehicles.

The figure in Italy more than doubled due to government subsidies but was not enough to cover the loss in the two major auto markets. Overall overseas sales fell 0.1 percent to 717,629 units.

Japan saw a 0.6 percent decline to 140,353 cars due to the production halt of the three models, including the popular Yaris Cross sport utility vehicle, Toyota said.

Japan’s eight major automakers, including Toyota, built a total of 2.05 million vehicles globally in July, down 0.5 percent from a year earlier, according to the companies.

Stiffer competition in China weighed down their output, with Nissan Motor Co logging a 12.5 percent drop to 237,462 vehicles.

Combined global sales rose 0.1 percent to 2.02 million vehicles, their data showed.