Toyota Global Sales Drop 3.7% in April Amid Middle East Tensions, Export Slump and Profit Pressure

Toyota announced on May 28 that its global vehicle sales in April 2024 totaled 902,015 units, down 3.7% year-over-year, marking the third consecutive month of decline. Global production for the same period rose 3.4% year-over-year to 933,685 units. The sales drop was partly attributed to a high base of comparison from the same period last year. Due to the ongoing Middle East conflict, Toyota’s exports to the region plummeted by 92% year-over-year in April. The company estimates that nearly half of its export operations have been affected and plans to expand production cuts overseas. Amid escalating tensions involving Iran and other factors, Toyota now forecasts a decline in profit for the current fiscal year. Upstream suppliers have already issued warnings of material shortages, and the turmoil in the Middle East is expected to result in approximately ¥670 billion in lost profits. Despite these challenges, Toyota’s plants continue to operate normally. In the Chinese market, Toyota’s April sales fell 25% year-over-year. Honda and Nissan also reported declining sales in China during the same period, underscoring mounting pressure on Japanese automakers across the market.