Toyota expects $5.5 billion hit from Iran war fallout
Toyota has warned that the Iran war will cut its annual profit by about $5.5 billion as energy, shipping and raw material costs surge. The Japanese carmaker is revising its global supply forecasts in one of the biggest profit warnings yet linked to the conflict.
Toyota has warned that cost pressures driven by the Iran war will reduce its annual operating profit by about $5.5 billion. The carmaker pointed to higher prices for raw steel, aluminium and nickel, alongside soaring shipping costs as tensions persist around the Strait of Hormuz.
The warning prompted the Japanese giant to cut its full-year profit guidance by roughly 20 per cent. Toyota said it would tighten supply-chain agility, reshuffle global production plans and reprioritise its electric-vehicle pipeline to absorb the shock and protect margins.
The disclosure is one of the clearest single-company readouts yet of how the conflict is hitting global industry. Toyota shares dropped sharply at the Tokyo open, and analysts expect Honda, Nissan and other Asian automakers to issue similar updates in the coming weeks as the crisis works through their cost lines.
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