Middle East Market Sluggish, Toyota Global Sales Down in March 2026

Toyota RAV4 2026. (Photo: Toyota USA)

TOKYO - Japanese automotive giant Toyota Motor Corp posted a global sales decline for two consecutive months in March 2026. This decline was triggered by a drop in demand in the Middle East region as well as a model transition process for one of their best-selling SUVs, the RAV4.

Based on data released on Monday, April 27, as reported by Reuters, Toyota's total global vehicle sales (including the luxury brand Lexus) shrank by 7.3 percent compared to the same period last year, with a total of 897,871 units delivered.

In detail, overseas market sales fell 7.2 percent, while domestic sales in Japan fell 7.8 percent.

One of the main highlights in this report is the plunge in sales in the Middle East to almost a third (about 33 percent) in March, with total sales reaching only 34,000 units.

Although Toyota did not provide specific reasons for the sharp decline, this situation is in line with the condition of the automotive industry in general. A number of car manufacturers said that demand in the Middle East weakened due to the impact of regional conflicts that disrupted shipping routes through the Strait of Hormuz and hampered economic activity broadly.

In addition to the Middle East, other major markets also showed negative trends. Sales in the United States fell 8.5 percent, followed by a decline of 8.0 percent in the Chinese market.

RAV4 Model Transition

Internal factors also affect global delivery figures. Toyota revealed that although overall market demand remained stable, sales were impacted by the shift in production from the old RAV4 model to the latest version. As one of the world's most popular SUV models, this model change caused a pause in the availability of stock distributed to consumers.

In contrast to sales figures, Toyota's global production side showed a positive growth of 2.1 percent in March. Significant production increases were seen in the United States (up 4.9 percent) and China (up 7.7 percent), although production in Japan itself fell 3.3 percent.