The ongoing conflict in Iran has forced Toyota to reduce its production targets, according to overseas reports.
Business news outlet Nikkei Asia reports Toyota has told suppliers it will be cutting output by approximately 83,000 vehicles over the next six months.
While the change is expected to predominantly affect Middle Eastern markets, the Japanese car giant has cited weakening demand and rising fuel costs as the main drivers.
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“At this stage, we’re not seeing any impact to production for Australian-bound vehicles,” a spokesperson for Toyota Australia told CarExpert, adding they “expect strong supply for the remainder of the year”.
The latest decision comes after Toyota scaled down production by 40,000 in recent months. A blockade of the Strait of Hormuz is also believed to be impacting operations.
The company’s accounting chief Takanori Azuma says Toyota exports as many as 600,000 vehicles to the region each year, with some reports claiming up to half may be affected.
It’s understood the RAV4, HiLux, Fortuner, LandCruiser FJ, Corolla Touring, and Probox will all be included in the drawdown.
A total of 10 million vehicles were previously forecast to be produced across Toyota and Lexus brands this Japanese fiscal year, which runs from April 1, 2026 to March 31, 2027.
Toyota has warned investors that global conflicts and oil prices will likely impact earnings, with consolidated net profits expected to fall by 22 per cent.