On April 27, reports indicated that Toyota experienced a drop in global sales during March, mainly attributed to a slump in market demand for its top-selling model, the RAV4, prior to its redesign. Concurrently, the conflict in Iran poses a risk of disrupting vital supplies, which may compel manufacturers to scale back production. According to data released by Toyota on Monday, its global sales—including those of its subsidiaries, Daihatsu Motor and Hino Motors—decreased by 5.8% year-on-year in March, totaling 983,126 units. In contrast, global production saw a 3.9% increase, reaching 1.02 million units.

Despite the Middle East turmoil causing a surge in raw material prices, such as aluminum, and automotive component costs, Toyota has managed to sustain its operations. Suppliers are bracing for potential supply shortages that could extend for months. Even if the Strait of Hormuz reopens and transportation returns to normal, shortages may persist due to the time needed for refineries to resume operations and for shipping companies to alleviate vessel congestion in the Persian Gulf. In March, major supplier Denso Corp. reported that the conflict had led to a reduction of approximately 20,000 units in Japan’s monthly automotive production.