Toyota will cut overseas production by 100,000 units through February 2027. Standard combustion-engine RAV4 production will be reduced overseas. Key China-market models, including the bZ3X, face production cuts. Toyota warned a month ago that the conflict in Iran and the chokepoint at the Strait of Hormuz would force it to pull 83,000 vehicles out of its overseas production schedule by November. That number was already steep for the world’s largest automaker. Now the company has confirmed the cuts won’t stop there, and they’re carrying into next year. The all-new RAV4 lands among the hardest hit, again. The revised figure puts overseas production down by roughly 100,000 units through February 2027. As gas prices remain high, Toyota says new vehicle demand remains suppressed across the Middle East and North Africa (MENA) and in East Asia. Key suppliers have already been told to plan around the new production outlook. Read: Toyota’s RAV4 Is Selling So Fast Dealers Are Counting Stock In Hours, Not Days The new RAV4, arguably the most important vehicle Toyota currently sells, is among the models that will be affected. Toyota will cut production of the standard combustion-engine RAV4 versions, despite only recently resuming production of hybrid models at its Kentucky plant after retooling delays. Toyota had previously pegged the disruption at roughly 55,000 lost RAV4 sales in the US this year. The company did not specify how many fewer RAV4s will be built overseas, but noted it will increase Japanese production of the RAV4 and Land Cruiser 250 by 4,200 units in the second half of the current fiscal year to help combat some of the international cuts. Dealers Are Already Struggling To Meet RAV4 Demand This won’t help the thousands of clients desperately waiting for the new RAV4, particularly in the US. As we recently revealed, some dealerships have hundreds of customers waiting to pick up the keys to their new RAV4s. What’s more, several sales locations are now counting RAV4 inventory in hours’ supply, rather than days, given how popular it’s proving to be. Other models will be impacted by Toyota’s production cuts, particularly in China. These will include the bZ3X, bZ7, and the Chinese-spec Camry. Automotive World notes that Toyota’s latest EVs in China have failed to pull shoppers away from local brands, particularly those buying BYD, Nio, and Xiaomi models, forcing it to reset its local sales ambitions.
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