Toyota Motor sales fell slightly in February, hurt by aggressive competition in electric vehicles in China and weak demand at home in Japan. The numbers don¡¯t yet reflect the impact of the Iran conflict, which started on the last day of the month.

Global sales in February ¡ª including those of subsidiaries Daihatsu Motor and Hino Motors ¡ª fell 2.3% from last year to 806,905 units, the company said Monday. Toyota and Lexus brand sales fell 13.9% in China, while production there shrank 11.5%, mainly because of the timing of this year¡¯s Lunar New Year holiday.

While the world¡¯s biggest carmaker has maintained its footing despite of a global downturn in EV demand and the cost of U.S. tariffs on cars and car parts, the bigger question for the global auto industry will be the degree of disruption from the Middle East conflict. Japanese carmakers, which rely on the region for an estimated 70% of their aluminum supply, have been dialing back production as supply chains become more unpredictable.

Earlier this month, the Japan Automobile Manufacturers Association said the conflict is beginning to affect deliveries and supplies. Domestic manufacturers exported roughly 800,000 automobiles to the Middle East in 2025, which amounts to about ?2.5 trillion ($15.6 billion), according to the industry group.

Shifting shipping lanes from the Strait of Hormuz, now blocked off, to South Africa¡¯s Cape of Good Hope would almost double delivery times to about 100 days, JAMA said.

Toyota and Nissan Motor have signaled that they plan to reduce production in March, while Honda Motor will counteract export reductions in the Americas, Japan and Thailand by ramping up local production in those countries, according to NHK.

Separately, Toyota¡¯s joint ventures in China are planning to recall more than 560,000 sport utility vehicles to address a defect in second-row seats that could risk passenger collision safety. Toyota and local partner Guangzhou Automobile Group will recall 317,990 Highlander vehicles beginning April 1, according to China¡¯s State Administration for Market Regulation on Friday. Its joint venture with China FAW Group?will recall 242,170 Crown Kluger SUVs.

This is part of a global recall of about 1.23 million vehicles, a spokesperson for Toyota said. About as many cars in North American were impacted as China, according to the company.