Nissan and Toyota Cut Production Due to Middle East Logistics Disruption

[Supply Chain Shock] Geopolitical tensions have disrupted shipping through the Strait of Hormuz, prompting Nissan and Toyota to announce production cuts.

Key Developments: Nissan's Kyushu plant reduces output by 1,200 units, Toyota trims nearly 40,000 vehicles over two months

Due to the situation in Iran, Nissan has reduced production this month by approximately 1,200 units at its Kyushu plant in Japan, affecting the X-Trail (sold overseas as Rogue) and Serena models to free up warehouse space; however, production of the high-margin Patrol SUV remains unaffected. The Middle East is Nissan's second-largest export market, with exports reaching 77,784 units in 2025, a year-on-year increase of 24%.

Strategic Rationale: Logistics disruption—not supply chain breakdown—leads automakers to prioritize core models

Nissan CEO Ivan Espinosa stated that the current issue is confined to distribution bottlenecks, with no impact on parts supply. Toyota also announced it will cut combined production by nearly 40,000 units in March and April, primarily affecting Middle East bestsellers like the Land Cruiser. In 2025, Japan exported approximately 820,000 complete vehicles to the Middle East, with export value rising 15.3%, underscoring the region’s strategic importance.