Toyota would be forced to revise downward the production destined for foreign markets by about 83,000 units by November, increasing the extent of the cuts beyond what was previously communicated. The data, anticipated by Nikkei citing sources familiar with the dossier, is linked to rising tensions in the Middle East and the consequences on the global supply chain, worsened by the closure of the Strait of Hormuz. The reduction would particularly concern vehicles destined for the Middle Eastern and Asian markets, with direct impacts on SUV models of the Rav4 series.
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Toyota revises production estimates downward
According to reports, the Japanese company has already started the necessary operations by informing the main component suppliers of the new production planning. On the financial front, the company estimates that the impact of the conflict in the Middle East could erode the operating margin by 670 billion yen, equal to about 3.6 billion euros. Meanwhile, the group remains focused on the goal of placing 10 million vehicles between the Toyota and Lexus brands by the end of 2026. But it also forecasts a consolidated net profit expected at 3,000 billion yen, down 22% compared to the previous fiscal year.
Deteriorating scenario
Finally, Toyota itself emphasizes that the scenario could worsen further. Financial officer Takanori Azuma reportedly explained that the projection could be revised downward if conditions in the Persian Gulf and the oil market deteriorate. Operationally, the company plans to suspend the second line of the Tsutsumi plant, in Aichi prefecture, where the Camry is also assembled. In 2024, before the escalation of the conflict, the company exported between 500,000 and 600,000 vehicles per year to the Middle East. In this regard, Azuma reportedly warned that almost half of those volumes will be compromised.
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