The Strait of Hormuz paralyzes logistics, losses estimated at 3.6 billion euros
– TOKYO, MAY 26 – Toyota will be forced to reduce production destined for foreign markets by approximately 83,000 units by November, more than doubling the previously announced cuts, initially expected at 38,000, due to growing tensions in the Middle East and the serious repercussions on the global logistics chain caused by the closure of the Strait of Hormuz. This was anticipated by the Nikkei newspaper, which cites sources familiar with the dossier, explaining that the downward revision mainly affects vehicles intended for the Middle Eastern and Asian markets, with direct repercussions on SUV models of the Rav4 series.
In this regard, Toyota has already taken steps to inform the main component suppliers of the new production plan.
On the financial front, the world’s largest automaker estimates that the impact of the conflict in the Middle East will erode its operating margin by 670 billion yen, equivalent to approximately 3.6 billion euros. The group aims to sell 10 million Toyota and Lexus branded cars by the end of 2026, with a consolidated net profit expected at 3,000 billion yen (16.20 billion euros), down 22% compared to the previous year. A projection which, warned financial manager Takanori Azuma, could be further revised downwards if conditions in the Persian Gulf and the crude oil market were to deteriorate beyond expectations. On an operational level, Toyota plans to suspend the second line of the Tsutsumi plant, in Aichi Prefecture, where the Camry, among other models, is assembled. In 2024, before the outbreak of conflict, Toyota was exporting between 500,000 and 600,000 vehicles a year to the Middle East. “Almost half of those volumes will be affected,” Azuma said during the presentation of its 2025 financial results. The automaker’s foreign production in fiscal 2025 stood at 6.65 million units.
