Toyota Cuts 83,000 Overseas Units, Boosts EV and Hybrid Output
TM•Toyota will cut overseas production by 83,000 vehicles through November, up from 38,000, citing weakened demand in the Middle East and Asia and higher fuel prices. Simultaneously, it reduced domestic output by 41,500 units for key models and plans to boost hybrid and electric vehicle production to offset losses.
1. Overseas Production Reduction
Toyota notified suppliers it will expand planned overseas production cuts to 83,000 vehicles through November, up from 38,000 units. The reduction targets markets in the Middle East and Asia, driven by demand weakness following the Strait of Hormuz blockade and sustained high fuel prices.
2. Domestic Output Adjustments
Domestic output earmarked for Middle Eastern markets was trimmed by 40,000 units in March and April, with an additional 1,500-unit cut scheduled between June and September. Affected models include RAV4 petrol-engine SUVs, Probox commercial vans and Corolla Touring station wagons.
3. Financial Results Impact
In its full-year FY26 results, Toyota reported operating income down 21.5% to ¥3.76 trillion, with a ¥1.38 trillion impact from US tariffs. Management warned that further volatility in Middle East conditions or crude oil markets could prompt additional earnings revisions.
4. EV and Hybrid Production Strategy
To offset petrol vehicle reductions, Toyota plans to increase output and exports of Prius hybrids and other electric vehicles. It also intends to import Taiwan-made Noah and Voxy minivans for sale in Japan starting October, marking a first for its core lineup.
