Toyota and Nissan Cut Production Due to Middle East Tensions

[Market Volatility] Toyota and Nissan have been forced to reduce production due to the closure of the Strait of Hormuz to shipping.

Core Development: Logistics Disruption Hinders Japanese Automakers' Exports

Toyota has revised its Middle East production downward twice within a month, and Nissan has followed suit with targeted production cuts at its domestic plants in Japan. The issue is not a shortage of parts, but rather that finished vehicles cannot be delivered to the Middle Eastern market, leading to inventory pile-ups and strained warehouse capacity.

Key Data: Middle East Accounts for Nearly 30% of Japanese Vehicle Sales

In 2025, Japanese automakers sold 870,000 vehicles in the Middle East, capturing nearly 30% of the regional market share, with annual export revenue reaching 2.45 trillion yen. The Middle East is Nissan’s second-largest global export market and a core sales region for models such as the Land Cruiser and Hilux.

Industry Impact: Geopolitical Conflict Disrupts Global Supply Chains

As a critical energy and shipping corridor, the closure of the Strait of Hormuz has directly disrupted Japanese automakers’ annual production and sales schedules, highlighting their heavy reliance on the Middle Eastern market.