On the Dash:
- Toyota global sales fell 7.3% in March, the second consecutive monthly decline.
- RAV4 deliveries dropped nearly 50% in Q1 due to a planned model changeover at U.S. plants.
- Middle East conflict disrupted shipping routes, further cutting regional Toyota sales by nearly a third.
Toyota Motor Corp. reported on Monday that global vehicle sales fell 7.3% in March to 897,871 units. It’s the second straight monthly decline, as a drop in RAV4 deliveries left many U.S. Toyota dealers with low inventory. Meanwhile, U.S. sales of new Toyotas dropped 8.5%.
A Toyota spokesperson says it’s a supply issue, not a demand problem. The spokesperson says RAV4 production was impacted by the changeover to an all-new model, affecting availability. The shortage stems from a production gap at Toyota’s Kentucky assembly plant, which has not yet fully retooled for the all-new 2026 RAV4. Year-to-date RAV4 sales stand at 59,869, down from 115,402 through the same period last year. In March alone, just 21,693 RAV4s were sold compared to 41,509 a year ago.
The ongoing conflict in Iran is also partially blamed for the global sales slump. Iran has blocked cargo ships from using the Strait of Hormuz, making it harder to get cars to customers.
Despite the sales slide, Toyota says global production rose 2.1% in March, including a 4.9% gain in the United States. Analysts say it’s a signal the company is building inventory ahead of an anticipated recovery.
Full U.S. production capacity is expected to return by summer. The previous-generation RAV4 is meanwhile holding near MSRP on used lots, and competing models are absorbing displaced shoppers. Grand Highlander sales rose 35% in March, the 4Runner surged 77%, and BZ4X electric vehicle sales climbed 140% year-over-year in the first quarter.
