The automaker cites higher fuel costs and weaker demand in China and the Middle East for the extended production cuts.
Toyota will reduce overseas vehicle production by approximately 100,000 units through February 2027, attributing the move to disrupted tanker traffic at the Strait of Hormuz. The cuts follow military strikes in the region, which have elevated fuel prices and dampened demand in key markets like China and the Middle East.
The company had previously trimmed domestic output for Middle Eastern markets by 40,000 units in March and April. An earlier plan targeted an 83,000-unit reduction at overseas plants between June and November, a figure now exceeded by the latest revision. Affected models include petrol variants of the RAV4 and Avalon, as well as electric vehicles like the bZ3X and bZ7 for China.
Toyota will offset some cuts by increasing domestic production in Japan by 4,200 units in the fiscal second half, focusing on the RAV4 and Land Cruiser 250 SUVs. Lexus ES sedan output for China will be reduced further amid intensifying EV competition.