Toyota Motor’s global vehicle sales declined for the fourth consecutive month in May, as disruptions linked to the Iran conflict affected operations in the Middle East, while weaker demand in China placed additional pressure on sales.
The Japanese automaker sold 885,207 vehicles worldwide in May, including sales from its small-car subsidiary Daihatsu Motor, representing a 7.4% decline compared to the same month last year.
Global production also decreased by 5.8% year-over-year, reaching 857,765 units.
The figures highlight ongoing challenges for Toyota’s international operations, driven by geopolitical tensions, logistics disruptions, and intensifying competition in major global markets.
Sales in the Middle East fell 38.6%, reflecting the impact of the regional conflict on both shipments and customer demand.
In China, Toyota’s sales declined 31.7% compared with the previous year, as domestic electric vehicle (EV) manufacturers continued to strengthen their position in the world’s largest automotive market.
Toyota has previously stated that the Middle East represents a key export market, with annual shipments estimated at 500,000 to 600,000 vehicles.
The company also warned that a significant portion of these exports would likely be affected by ongoing regional disruptions.
Toyota expects lower earnings for the fiscal year ending March 2027, citing rising raw material costs and continued supply chain pressures.
The company forecasts its operating profit to decline to 3 trillion yen ($18.8 billion), compared with 3.8 trillion yen in the previous fiscal year.
