Toyota Motor Corp. will reduce overseas production by approximately 100,000 vehicles through February 2027. Logistical disruptions from Middle East conflicts near the Strait of Hormuz drove this decision.
High fuel prices and weakening consumer demand also contributed to the cuts. The reduction primarily targets gasoline-powered models for Middle Eastern and Asian markets.
Sales in China face additional pressure from an economic slowdown and a rapid shift toward electric vehicles. These adjustments expand upon previous production cuts linked to high energy costs.
Toyota will slightly increase domestic production in Japan for specific models. This includes the RAV4 and Land Cruiser 250.