Toyota warns of sales decline due to Middle East crisis

Toyota Motor Corporation is facing weakening performance amid growing global market instability, with global sales declining by 5.8%.

The Japanese automotive giant’s global sales during the reporting period totalled 983,126 vehicles, Caliber.Az reports, citing Japanese media.

The company attributed the downturn to fluctuating demand in key markets and preparations for the renewal of its RAV4 model lineup.

At the same time, production capacity increased by 3.9% to 1.02 million units.

Toyota has highlighted particular risks linked to the conflict in the Middle East, a critical supply hub for the automotive industry.

Around 70% of the aluminium used in Japan’s car manufacturing is imported from the region.

Rising tensions in the Persian Gulf have already disrupted logistics, leading to a 3.3% drop in production in Japan.

Analysts estimate that if conditions persist, the company could lose up to 20,000 vehicles per month.

Despite supply chain pressures, Toyota continues its shift toward green technologies.

Sales of electric vehicles more than doubled to 35,524 units, while hybrid sales rose 3.7% to 442,544 vehicles.

In 2025, Toyota retained its position as the world’s largest automaker with total sales of 11.3 million vehicles, ahead of Volkswagen Group.

Rivals, however, showed weaker performance, with Honda sales falling 13% and Nissan down 7%.

By Bakhtiyar Abbasov