Toyota to Cut Over 120,000 Vehicles in Six Months Amid Hormuz Strait Disruptions and High Oil Prices

In late May, Toyota notified its suppliers of production cuts, revising its planned overseas production reduction for the period through November upward from 38,000 vehicles to approximately 83,000. Additionally, the company has already cut about 40,000 units of Japan-based production specifically allocated for the Middle Eastern market. Combined, these adjustments mean Toyota plans to reduce its total vehicle output by more than 120,000 units over a six-month period. This production cut is primarily driven by logistics disruptions caused by restricted passage through the Strait of Hormuz and weakened market demand due to high oil prices. The Middle East has long been a key export market for Toyota, and the region also supplies certain critical raw materials. Consequently, disruptions to the strait are exerting dual pressure on both Toyota’s production and sales.