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Toyota widens overseas output cuts as Hormuz blockade hits demand

The Japanese automaker has notified major suppliers of the revised schedule, citing softening demand across the Middle East and Asia alongside rising fuel prices that are curbing appetite for petrol-powered vehicles

Shubhendu Vimal May 26 2026

Toyota has widened its planned overseas production reductions to approximately 83,000 vehicles through to November, up from a previously announced 38,000 units, as the Strait of Hormuz blockade weighs on demand.

The Japanese automaker has notified major suppliers of the revised schedule, citing softening demand across the Middle East and Asia alongside rising fuel prices that are curbing appetite for petrol-powered vehicles, according to a Nikkei Asia report.

Vehicles affected by the overseas cuts include petrol-engine SUVs in the RAV4 series, assembled in China, and the Innovative International Multipurpose Vehicle series, which serves emerging markets.

Toyota had already reduced domestic output by 40,000 units earmarked for Middle Eastern markets during March and April.

A further reduction of 1,500 units is scheduled for domestic production between June and September against its April plan, with Probox commercial vehicles and Corolla Touring station wagons most affected.

To partially offset the reductions, Toyota plans to increase output and exports of Prius hybrids and other electric vehicles.

Earlier in May, the company scheduled a two-day suspension of the second production line at its Tsutsumi Plant in Aichi Prefecture, Japan, which builds models including the Camry sedan.

A one-day suspension was also planned for the second line at contract manufacturer Gifu Auto Body's Kakamigahara facility in Gifu Prefecture. No domestic plant suspensions are scheduled for June.

The reported production revisions follow a difficult financial year.

Toyota's full-year FY26 results, published earlier this month, showed operating income falling 21.5% to Y3.76tn ($39.81bn), with a Y1.38tn impact from US tariffs offsetting gains from higher sales volumes, pricing revisions and value chain revenue growth.

The company has warned that its earnings outlook could face further downward revision should conditions in the Middle East and crude oil markets worsen.

Separately, Toyota is reported to be planning to import Taiwan-manufactured Noah and Voxy minivans for sale in Japan from October, in what would be a first for its core model lineup.

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