Toyota Motor reported a second consecutive monthly decline in global sales in March, as demand weakened in key markets and production shifts for its popular RAV4 model impacted volumes.
The automaker’s global sales fell 7.3 percent year-on-year to 897,871 vehicles, with overseas sales down 7.2 percent and domestic sales in Japan declining 7.8 percent. The figures include sales from its luxury brand Lexus.
A sharp drop in the Middle East stood out, where sales plunged by nearly one-third to around 34,000 vehicles during the month. While Toyota did not specify the exact cause, broader industry trends point to weakened demand amid geopolitical tensions and disruptions to trade routes, particularly around the Strait of Hormuz.
Other major markets also saw declines, with sales falling 8.5 percent in the United States and 8 percent in China, reflecting a more cautious global demand environment.
Toyota said underlying demand remains stable, but sales were affected by the transition in production from the outgoing RAV4 to a new model. The RAV4 is one of the company’s best-selling vehicles globally, making the shift a significant short-term factor impacting volumes.
On the production side, Toyota posted a 2.1 percent increase globally in March, supported by growth in key markets. Output rose 4.9 percent in the United States and 7.7 percent in China, although production in Japan declined by 3.3 percent.
Despite the recent slowdown, Toyota maintained its position as the world’s top-selling automaker for the sixth consecutive year in 2025, underscoring its strong global footprint and operational resilience.
The latest figures highlight how geopolitical developments and product cycle transitions are influencing short-term performance, even as underlying demand trends remain relatively steady.
