Toyota March Sales Drop 7.3% to 897,871 Units

Toyota Motor Corp. reported a decline in global vehicle sales for March, marking the second consecutive monthly drop, as production shifts for its popular RAV4 sport utility vehicle and disruptions from the conflict in the Middle East impacted deliveries.

The Japanese automaker, which includes its Lexus luxury brand in the figures, said worldwide sales fell 7.3 percent from the year-earlier period to 897,871 vehicles. Overseas sales decreased 7.2 percent, while domestic sales in Japan dropped 7.8 percent. The company attributed the overall softness to steady underlying demand overshadowed by the transition from the previous RAV4 model to a refreshed version, one of Toyota's top-selling vehicles globally.

Regional breakdowns highlighted varied pressures. Sales in the Middle East, a smaller market for Toyota, plunged nearly a third to about 34,000 units, though the company did not specify a direct cause. Other automakers have linked weakened demand in the region to the U.S.-Israeli military actions against Iran, which have disrupted shipments through the Strait of Hormuz and broader economic activity. In the United States, sales declined 8.5 percent, and in China, they fell 8.0...