Toyota sales drop for fifth straight month amid Iran turmoil and China slowdown

Toyota’s global vehicle sales fell 1.1% year-over-year in June to 926,688 units, marking the fifth consecutive monthly decline, while production rose 2.2% to 984,408 units. The drop was driven by a 24% plunge in the Middle East and a 27% slump in China, where regional conflict and fierce EV competition from BYD and others eroded demand. North America and Japan remained bright spots, with strong hybrid sales propping up the market. Toyota warned of lower fiscal 2027 profit due to soaring raw-material costs, trimming its operating profit forecast to 3 trillion yen ($18.4 billion)—well below the 3.8 trillion yen logged in the prior year. Honda bucked the trend with a 1.3% sales gain to 289,172 units, though its China sales cratered 44%. Nissan fared worse, with an 8.3% decline to 240,345 units. The turmoil follows months of escalating U.S.-Saudi tensions with Iran, disrupting supply chains and inflating costs for Japanese automakers heavily reliant on Middle Eastern markets.