Toyota to cut overseas production amid Middle East crisis

Toyota Motor Corporation plans to reduce overseas production by approximately 83,000 vehicles by November due to ongoing logistical disruptions linked to the war in the Middle East, sources familiar with the matter told Kyodo on Monday.

Previously, the Japanese automaker had estimated a production cut of around 38,000 vehicles following the closure of the Strait of Hormuz. The reductions are expected to mainly affect vehicles intended for Middle Eastern and Asian markets, CE Report quotes AGERPRES.

Toyota has informed its key suppliers about the revised production plan.

In fiscal year 2025, the company’s overseas production stood at 6.65 million vehicles. Toyota recently warned that the impact of the Middle East conflict could reduce operating profit by 670 billion yen ($4.2 billion).

Data released this month showed that Toyota Motor Corp’s sales in fiscal year 2025 rose 5.5% from the previous year to 50.68 trillion yen ($323 billion), making it the first Japanese company to record annual sales exceeding 50 trillion yen.

However, net profit fell 19.2% to 3.85 trillion yen, partly due to U.S. tariffs, while operating profit declined 21.5% to 3.77 trillion yen, the world’s largest automaker said.

Sales of the Toyota group, including subsidiaries Daihatsu Motor and Hino Motors, increased 2.5% in fiscal year 2025 to 11.28 million units, supported by strong demand in key markets including Japan.

For the current fiscal year, the company expects net profit to decline 22% to 3 trillion yen, while sales are forecast to rise 0.6% to 51 trillion yen. Operating profit is also expected to fall 20.3% to 3 trillion yen. Toyota also warned that the Middle East crisis could have an impact of around 670 billion yen during the current fiscal year.

Globally, the Toyota group expects vehicle sales of 11.18 million units, a decline of 0.9%.

The group’s results and forecasts highlight the effects of the Middle East crisis, as higher energy prices are pushing customers to seek more fuel-efficient vehicles.

Other automakers have also warned about the effects of the war affecting the region.

According to Reuters calculations, Toyota remained the world’s largest automaker in 2025 for the sixth consecutive year, driven by strong demand for hybrid vehicles in North America, ahead of German rival Volkswagen AG.

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