Toyota Reports A Drop In Sales

Japanese car manufacturer Toyota Motor announced that it recorded a drop in sales in February, and experts warn that it will soon face the consequences of the conflict in the Middle East and disruptions in supply chains.

Toyota Motor’s total global sales in February, including subsidiaries Daihatsu and Hino, fell 2.3 percent year-on-year to 806,905 vehicles, the Japan Times reports.

According to Tanjug, the decline was more pronounced in the Chinese market—sales in the Toyota and Lexus divisions decreased by 13.9 percent, while production in that country decreased by 11.5 percent, primarily due to the postponement of the Lunar New Year.

Toyota Motor Company, which remains the world’s largest carmaker, is managing to maintain stability despite a global slowdown in demand for electric vehicles and rising costs associated with US tariffs. A key risk for the entire industry is the potential impact of conflict in the Middle East.

Japanese automakers rely on the region for about 70 percent of their aluminum supply, making them particularly vulnerable to disruptions in trade and logistics. According to the Association of Japanese Automobile Manufacturers, the conflict is already starting to affect supplies and the availability of raw materials.

Japanese companies in the auto industry during 2025 placed about 800,000 vehicles in the Middle East markets, worth approximately 15.6 billion dollars, and, realistically, they will now face a significant decline.

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