Toyota Reduces Production Due to Consequences of the War in Iran - Auto bigmir)net
Tensions in the Middle East and the unstable situation in the Strait of Hormuz are increasingly impacting the global automotive industry.
Tensions in the Middle East and the unstable situation in the Strait of Hormuz are increasingly impacting the global automotive industry.
Tensions in the Middle East and the unstable situation in the Strait of Hormuz are increasingly impacting the global automotive industry. One of the first major companies to face the consequences of these events is Toyota. The Japanese manufacturer has already had to revise its production plans several times due to rising energy prices and changes in consumer demand in key markets.
According to CarBuzz, by November, Toyota's total production cut could reach approximately 83,000 vehicles. This is significantly higher than previous estimates, which were around 38,000 cars in March. The largest impact of the cuts will be felt by the company's factories in Japan.
The production volume reductions have affected models primarily targeted at the Middle Eastern and Asian markets. Specifically, this includes the Toyota RAV4, light commercial vehicles from the IMV series, as well as the Toyota ProBox and the Corolla Touring wagon.
Other Japanese automakers are also being forced to take similar steps. Nissan, Mazda, and Subaru have already confirmed reductions in production or exports; however, Toyota is currently facing the most significant adjustments among them.
At the same time, the market situation is creating additional incentives for the segment of economical and electrified vehicles. Against the backdrop of rising fuel prices, Toyota is increasing the production of hybrid models, particularly the Prius, as well as some electric vehicles. According to Reuters, in April, electric vehicle sales in Europe rose by 34% year-on-year, with a significant portion of this growth attributed to Chinese manufacturers, notably BYD.
Despite the challenging situation, Toyota maintains an optimistic outlook and expects to sell around 10 million vehicles in the current financial year, slightly exceeding last year's figure. At the same time, the company forecasts a potential decline in net profit by 22% — to approximately 3 trillion yen (about $18.9 billion). Toyota's management does not rule out further production adjustments if the geopolitical situation remains tense.
Earlier, we reported that Hyundai announced a large-scale recall of vehicles due to dangerous defects.