Toyota’s car sales fell in September, dragged down by a monthslong drop in China where higher gas prices are weighing on demand for non-electric vehicles.

Global sales, including those of subsidiary Daihatsu, fell 2.9% from a year earlier to 921,847 units, the company said in a statement Thursday. Production declined 4.5% to 989,168 vehicles.

China, the global auto industry’s leading market, has proven difficult for the world’s biggest carmaker. Strong demand for new or hybrid models let Toyota maintain or even grow its sales in Japan, Europe and the U.S. But sales in China have fallen for eight straight months, fueling the same stretch of declines in broader sales.

Legacy manufacturers have been struggling to compete with Chinese brands churning out battery-powered cars that cater to the demands of customers who want the latest in features and onboard software.

Toyota and Lexus brand sales in China fell 20% in September.…