TOKYO ― Toyota Motor on Thursday said global vehicle sales fell for a third consecutive month in April, hit by sharp declines in China and the Middle East.
This as Japanese vehicle exports to the Middle East were nearly wiped out in April as the US-Israeli war on Iran disrupted shipping to a key region for global automakers that also include Nissan.
The collapse suggests shipments of passenger cars, trucks and buses to the region have largely halted following the closure of the Strait of Hormuz.
Toyota’s global sales dropped 3.1 percent from a year earlier to 849,306 vehicles. Overseas sales slumped 7.5 percent, while those in Japan rose 24.2 percent, as sales rebounded after earlier purchase delays occurred ahead of an environmental tax change.
By region, sales in the Middle East plunged 33.7 percent to just over 31,000 vehicles and fell 25.4 percent in China amid tough market conditions. In the US, Toyota's biggest market, they slipped 4.6 percent.
The Middle East accounted for about 14 percent of Japan's global motor vehicle exports in 2025.
Toyota’s global production rose 2.0 percent in April from a year earlier, as a 12.9 percent rise in Asia helped offset declines in the US and Japan.
These figures include its luxury Lexus brand.
Alternative
The war may prompt Japan’s automakers to set their sights on India over the next three to five years and step up production and exports from there as they seek to reduce shipping-related risks and costs.
Toyota said it would build a new factory with an annual output capacity of 100,000 vehicles in India.
The automaker plans to export cars made at this plant, which is set to begin production in the first half of 2029.
"In terms of absolute sales, Toyota is the most exposed, as it is the most successful automaker in the region," said Julie Boote, an auto analyst at Pelham Smithers Associates.
"However, since Toyota is regionally well diversified, with the Middle East accounting for about 6 percent of its total sales, it can absorb this hit better than others," Boote added.
