Key Points
- Global sales fall 7.3pc year-on-year in March to 897,871 units
- Middle East volumes plunge nearly one-third amid regional disruptions
- RAV4 model transition constrains shipments despite a steady demand outlook
- Global production rises 2.1pc, signalling supply capacity remains intact
ISLAMABAD: Toyota Motor Corporation reported a second consecutive monthly decline in global vehicle sales in March, as the Middle East downturn and a transition to the new RAV4 sport utility vehicle contracted volume.
Global sales fell 7.3 per cent year-on-year to 897,871 units, with overseas sales down 7.2 per cent and domestic sales in Japan declining 7.8 per cent, according to company data released on April 27.
The Middle East emerged as the most significant drag, with sales dropping by nearly one-third to around 34,000 vehicles.
The company did not specify the exact causes. However, industry trends indicate global energy shock after the Iran-US war in the Middle East.
The regional tensions have also affected transport routes through the Strait of Hormuz and weakened demand conditions.
Toyota indicated that underlying demand trends remain broadly stable, suggesting the decline is driven more by temporary factors than structural weakness.
A key contributor to the softer sales performance is the ongoing transition from the outgoing RAV4 model to its redesigned successor.
The shift in production has tightened inventories and slowed shipments during the changeover period, a typical pattern during major model updates.
Despite the sales decline, Toyota’s global production rose 2.1 per cent in March, supported by a 4.9 per cent increase in the United States and a 7.7 per cent rise in China. Production in Japan, however, fell 3.3pc.
The divergence between rising production and falling sales indicates that supply capacity remains intact, with the potential for a rebound once the RAV4 rollout stabilises and regional market conditions improve.
Toyota, one of the world’s largest automakers, sold about 11 million vehicles in 2025 across its Toyota and Lexus brands, maintaining its global leadership position.
The latest data suggested current headwinds are cyclical, tied to geopolitics and product timing rather than a broader demand collapse.
