Profits in decline, sales soaring: How Toyota became a "victim" of the Iran crisis and its own success
In the automotive world, Toyota has always been the equivalent of a long-distance marathon runner: steady, efficient, and hard to get off track. However, a recent financial report shows that even the Japanese giant is not immune to the shockwaves of current geopolitics. While demand for hybrid vehicles is reaching historic highs, the conflict in Iran has created a "bill" that has investors raising an eyebrow.
War bill: $4.3 billion
Toyota reported a sharp drop of almost 50% in quarterly profit, a figure that seems to stem from a global crisis scenario, not from a year of record sales. The main culprit? Instability in the Middle East.
- Colossal costs: The direct impact of the Iran war is estimated at 670 billion yen (approx. 4.3 billion dollars) for this fiscal year.
- Where is the money going? Takanori Azuma, the company's chief financial officer, explained that the bulk of the amount is being absorbed by the rising cost of raw materials. But the "hemorrhage" doesn't stop there: logistics are a nightmare, shipments are delayed, and everything from energy to fuel and even body paint has exploded in price.
- Profit below expectations: Operating profit for the latest quarter was 569.4 billion yen, a freefall from the 1.1 trillion yen reported in the same period last year.
Betting on hybrids: 5 million reasons for optimism
While other companies rushed to bet everything on electric (and are now backing off), Toyota's conservative strategy is proving to be a lifeline. For the first time, the manufacturer estimates it will sell more than 5 million hybrid vehicles in a single year.
This robust demand is the only reason the annual forecast doesn't look even bleaker. Toyota has chosen an unusual path for a corporate giant: it has decided to bear some of the cost increases of its suppliers. In a gesture of solidarity typical of Japanese business culture, the company prefers to reduce its own profit margins to ensure that the production chain does not collapse under price pressure.
The situation in Romania: Toyota is "biting" Dacia's share
If globally the figures are overshadowed by the war, on the Romanian market, Toyota is going through one of the best moments in its recent history. In a national auto market that started 2026 with an overall decline of almost 20%, Toyota manages to swim against the current.
1. Resilience in top sales
Toyota has consolidated itself as the second best-selling brand in Romania, right after the undisputed leader Dacia. While the rest of the market suffers from economic uncertainty and problems with the "Rabla" program, Toyota reported in April 2026 a 6.8% increase compared to the previous year, reaching a market share of almost 10%.
2. Corolla's historic record
An interesting phenomenon is happening in the model rankings: the Toyota Corolla has climbed to 2nd place in the top of Romanians' preferences, threatening the positions traditionally held only by Dacia models (Logan or Duster). The success is largely due to Romanians' increased appetite for hybrid engines, as the cost of fossil fuels becomes increasingly unpredictable.
3. The decline of electrics helps hybrids
In the context where sales of pure electric cars (BEV) in Romania have stagnated or decreased due to the reduction of government subsidies, Romanian customers have migrated massively to the "middle path": the classic hybrid. Here, Toyota holds the technological and image supremacy, offering a safe alternative for those who want low consumption without the "anxiety of autonomy".
Conclusion
Toyota is in the paradoxical position of a general who wins battles on the ground (like the one in Romania) but sees the central treasury emptied by a war it cannot control. However, with a hybrid portfolio that seems like a "silver bullet" for the energy crisis, the auto samurai seems ready to withstand the financial siege.
Do you think the resilience of hybrid models in markets like Romania will be enough to offset the massive losses caused by external conflicts in the coming years?