Middle East Conflict Slashes Toyota's Global April Sales by 3.7%, Exports to Region Plunge 92%

Toyota announced on May 28 that its global vehicle sales in April 2024 totaled 902,015 units (including those from its subsidiary Daihatsu), down 3.7% year-over-year, marking the third consecutive month of annual decline. Meanwhile, global production rose 3.4% year-over-year to 933,685 units during the same period. Exports to the Middle East plummeted 92% year-over-year to just 2,418 units in April, due to supply chain disruptions triggered by the ongoing conflict in the region. Toyota stated it typically exports between 500,000 and 600,000 vehicles annually to the Middle East and expects nearly half of this export volume to be affected. Amid heightened raw material costs and logistics bottlenecks stemming from instability in Iran, Toyota plans to increase its overseas production cuts by approximately 83,000 units. The company now forecasts operating profit for the fiscal year ending March 2027 at ¥3 trillion (approximately $18.8 billion), below both the previous fiscal year’s ¥3.8 trillion and market expectations. Toyota attributed ¥670 billion of profit loss directly to the Middle East situation. Although operations at Toyota’s plants remain unaffected despite shipping disruptions in the Strait of Hormuz, prolonged regional tensions and worsening material shortages could test the company’s resilience. Additionally, high sales volumes a year earlier—driven by a pre-U.S. tariff implementation buying surge and the launch of the all-new RAV4—contributed to the tough year-over-year comparison. In China, Toyota’s April sales dropped 25% year-over-year. Meanwhile, Honda reported global sales of 265,215 units in April, down 7.9% year-over-year, while Nissan’s sales fell 7.6% to 208,663 units.