Additional pressure is coming from the Chinese market, where sales fell by 25%.
The conflict in the Middle East has impacted the company's exports and forced the automaker to revise its profit forecasts. Toyota is experiencing its third consecutive monthly decline in global sales compared to last year, Bloomberg reports.
In April, the company, along with its subsidiary brand Daihatsu, sold 902,015 vehicles - 3.7% less than a year earlier. Meanwhile, production increased by 3.4% to 933,685 cars.
One of the main reasons for the decline has been the consequences of the conflict in the Middle East. Due to logistics issues and disruptions in the region, Toyota's exports to Middle Eastern countries plummeted by 92% to just 2,418 vehicles.
Despite the challenging situation, Toyota has so far managed to avoid a complete shutdown of its factories, although routes through the Strait of Hormuz remain unstable.
The company also notes that last year's figures were artificially boosted by a surge in demand ahead of new tariffs and the launch of the updated Toyota RAV4 crossover.
Additional pressure is coming from the Chinese market, where Toyota's sales fell by 25% in April. Japanese manufacturers continue to lose ground due to increased competition from local electric vehicle brands.
Other Japanese automakers have also shown negative dynamics. Honda reduced global sales by 7.9% to 265,215 vehicles, while Nissan's sales fell by 7.6% to 208,663 cars.
Earlier, Toyota had already warned of an expected decline in profits for the financial year ending in March 2027. The company forecasts an operating profit of $18.8 billion, significantly lower than the previous year's result of $23.9 billion.
According to the manufacturer, due to the consequences of the conflict in Iran and supply chain disruptions, the company could lose about $4.2 billion. Japanese media also report that Toyota plans to further reduce production outside Japan by approximately 83,000 vehicles due to logistics issues.
It is worth noting that earlier reports indicated that Toyota retained its title as the largest car manufacturer in the world in 2025.
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