Toyota Motor global sales fall for third month amid Middle East disruptions

Toyota Motor Corp.’s global sales declined for a third consecutive month in April, as disruptions linked to the Middle East conflict continued to affect operations and exports across the automotive industry.

The Japanese automaker said Thursday that global sales, including those of subsidiary Daihatsu Motor Co, fell 3.7% year-on-year to 902,015 units in April.

Production, however, increased 3.4% from the previous year to 933,685 units.

The company has so far managed to keep factories operating despite disruptions to shipping routes through the Strait of Hormuz.

However, the prolonged conflict is beginning to expose broader risks for global carmakers dependent on Gulf-linked supply chains for parts, raw materials, and energy.

Middle East exports slump sharply

Toyota’s exports to the Middle East dropped 92% year-on-year in April to just 2,418 vehicles.

At Toyota’s earnings announcement earlier this month, accounting chief Takanori Azuma said the automaker exports roughly 500,000 to 600,000 vehicles annually to the Middle East.

He added that the company was assuming slightly less than half of that volume would be affected by the regional disruptions.

The company’s latest figures underline the growing pressure on logistics and trade flows tied to the conflict.

According to a Nikkei report, Toyota plans to expand overseas production cuts to around 83,000 vehicles because of logistical problems linked to regional tensions.

China's weakness adds to pressure

Toyota also faced weaker demand in China, where Japanese automakers continue to struggle with difficult market conditions.

Sales in China fell 25% in April compared with the same period last year.

The company noted that demand in several major markets remains strong, with customers still waiting months for certain vehicle models.

However, Toyota said last year’s sales were boosted by a buying rush ahead of tariffs and the launch of a new RAV4 sport utility vehicle model, creating a tougher comparison base this year.

Rival automakers also report declines

Other Japanese automakers also reported weaker sales figures for April.

Honda Motor Co. said its global sales declined 7.9% year-on-year to 265,215 units, while global output remained mostly flat.

Nissan Motor Co. reported on Friday that sales fell 7.6% to 208,663 units.

The declines highlight broader challenges facing the sector as geopolitical tensions and supply disruptions continue to weigh on operations.

Profit outlook weakens amid raw material concerns

Earlier this month, Toyota forecast a decline in profit for the fiscal year ending March 2027 as the automaker braces for higher raw material costs linked to disruptions caused by the war in Iran.

The company projected operating income of ¥3 trillion, or about $18.8 billion.

The forecast came in below analyst expectations and lower than the ¥3.8 trillion reported in the previous fiscal year.

Toyota’s suppliers have also warned that shortages linked to the Iran conflict are beginning to emerge.

The automaker said it would be difficult to offset the estimated ¥670 billion impact on its bottom line stemming from the regional turmoil.

The developments reflect growing concerns across the global automotive sector that prolonged geopolitical instability could further disrupt production, logistics, and material supplies in the coming months.