Toyota to cut overseas production by 100,000 vehicles this fiscal year



06/25/2026 3:12 AM


Toyota Motor Corp., the Japanese automaker, intends to cut overseas production by about 100,000 vehicles in the current fiscal year (ending March 2027) due to diminished demand resulting from the extended closure of the Strait of Hormuz, according to Nikkei.



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The company has informed key component suppliers about its updated production plans, as stated in the publication.

Fuel costs have surged significantly as a result of the shutdown of tanker passage through the Strait of Hormuz after the US and Israeli attacks on Iran, which has led to decreased vehicle demand in China, the Middle East, and elsewhere.

In the meantime, Toyota aims to boost output at its domestic factories by 4,200 vehicles in the latter half of the year compared to the original plans disclosed in May. This encompasses the RAV4 and Land Cruiser 250 sport utility vehicles.

As per its May prediction, Toyota aims to boost revenue by 0.6% in fiscal year 2027 to 51 trillion yen ($320 billion), whereas net profit is anticipated to decline by 22% to 3 trillion yen. The organization aimed to market around 10 million cars (a 1% rise).

source: asia.nikkei.com

 


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