Toyota's March sales declined for the second consecutive month: Weak demand in the Middle East + New generation RAV4 model drags down.

Toyota announced data on Monday, global car sales in March fell for the second consecutive month year-on-year, due to a significant decline in sales in the Middle East market and adjustments to popular SUV model RAV4. Global sales in March fell by 7.3% to 897,871 units; with overseas sales down by 7.2% and domestic sales in Japan down by 7.8%. This data includes Toyota's luxury brand Lexus. Looking at different regions, Toyota's sales in the Middle East in March plummeted by nearly one-third, sales in the US market dropped by 8.5%, and sales in the Chinese market fell by 8.0%. The Middle East is not a core market for Toyota, with sales in the region around 34,000 units in March, and Toyota did not provide a specific explanation for the sharp drop in sales in the region. Several car companies have indicated that ongoing tensions between the US and Iran impacting shipping through the Strait of Hormuz, as well as overall economic activity, have led to a continued weakening of car demand in the Middle East.