Iran war costs Toyota £3bn as prices of materials soar and sales fall
Summary
Toyota reported a loss of £3 billion due to higher costs and lower sales linked to the war in Iran. The company said profits dropped in the financial year ending March 2027, mainly because of rising material costs and disruptions caused by the conflict in the Middle East.Key Facts
- Toyota’s profits fell to 3.8 trillion yen for the year to March 2027.
- The war in Iran caused a 400 billion yen (£1.9bn) rise in material costs and a 270 billion yen loss from lower sales.
- The company expects profits to decrease again in the next year, forecasting operating income of 3 trillion yen (£14bn).
- Toyota faces extra costs for fuel, transportation, and parts like paint due to the conflict.
- The closure of the strait of Hormuz has disrupted exports of raw materials used by Toyota and other manufacturers.
- Toyota sells many hybrid cars, which combine petrol engines with batteries, but still sells fewer fully electric cars.
- U.S. tariffs under President Donald Trump also cost Toyota 1.38 trillion yen.
- Toyota’s global car sales rose by 2% last year, helped by growth in North America.
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