Toyota Global Vehicle Sales Decline in March Amid RAV4 Transition and Middle East Slowdown

Toyota Motor reported a decline in global vehicle sales for the second consecutive month in March, highlighting challenges tied to regional demand shifts and production adjustments. The Japanese automaker recorded total global sales of 897,871 vehicles, marking a 7.3% decrease compared to the same period last year. The figures, which include the luxury Lexus brand, reflect a 7.2% drop in overseas sales and a 7.8% decline in domestic sales in Japan.

One of the key factors impacting Toyota’s performance was a sharp contraction in Middle East sales, which fell by nearly one-third to around 34,000 units. Although the region represents a smaller share of Toyota’s global market, the steep decline contributed significantly to the overall drop. Industry analysts suggest that weakening demand in the Middle East may be linked to geopolitical tensions, including disruptions in shipping routes through the Strait of Hormuz and broader economic uncertainty.

In major automotive markets, Toyota also experienced notable setbacks. Sales in the United States decreased by 8.5%, while China saw an 8.0% decline. Despite these figures, the company emphasized that underlying demand for its vehicles remains stable.

Another contributing factor was the transition to a new version of the highly popular RAV4 SUV. As Toyota shifted production from the outgoing model to the updated version, deliveries were temporarily affected, leading to lower sales volumes during the month.

On the production side, Toyota showed resilience with global output rising 2.1% year-over-year. Manufacturing increased by 4.9% in the U.S. and 7.7% in China, although production in Japan dipped by 3.3%.

Despite recent sales declines, Toyota maintained its position as the world’s top-selling automaker for the sixth consecutive year in 2025, reinforcing its strong global presence and long-term market leadership.