Lates News

Toyota's March sales decline was due to weakening demand for its best-selling model RAV4 before the redesign, as well as the threat of conflict in Iran disrupting key supplies and forcing manufacturers to potentially cut production. The company reported on Monday that global sales in March (including subsidiaries Daihatsu and Hino) fell by 5.8% year-on-year to 983,126 units, while global production increased by 3.9% to 1.02 million units. These figures indicate that despite the turmoil in the Middle East driving up prices of raw materials like aluminum and basic costs of auto parts, the world's largest carmaker is able to continue operations. Suppliers are preparing for potential shortages that may last for months even if the Strait of Hormuz reopens and transportation returns to normal. Refineries need time to resume operations and shipping companies must clear the congestion of hundreds of ships stuck in the Persian Gulf. Major supplier Denso stated in March that ongoing conflicts have led to a reduction of approximately 20,000 vehicles in Japan's monthly car production.