Toyota may be the world's largest automaker, but the NASCAR giant is expected to take a huge hit as collateral damage of the Iran war.

On Friday, the Japanese automotive company announced that it might lose 22 percent of its net profit for the fiscal year ending 2027, which is estimated at $4.3 billion. This loss is the direct result of the ongoing geopolitical tension between Iran and Israel/US.

The Toyota Accounting group officer Takanori Azuma, while in an interview with Reuters, said, “The impact of the Iran war is being felt in everything from fuel costs, transportation expenses, and the cost of paint and other materials used at vehicle assembly plants."  

The automotive giant also revealed the operational cost for the quarter that ended on March 31st fell by 50 percent, which amounts to nearly 1.1 trillion yen to 569.4 billion yen, making it the company's lowest quarterly performance over the last three years.

Its shares ended down around 2.2%, their lowest close since mid-October. For a brand that sold a record 11.3 million vehicles in 2025, this is definitely a big hit. 

Toyota has also projected an increase in sales of hybrid vehicles. They expect the sales to increase by 5 million vehicles for the first time this year. To add to this, last week the automotive manufacturer revealed that their sales in the Middle East have fallen drastically due to the disruption in the shipment. 

In addition to this, the company also dealt with the traffic levied by the US President Donald Trump, which cut its operating profits by 1.4 trillion yen. 

With the geopolitical setback, the rising cost of raw materials, and the lack of shipment, the company is now forced to navigate the most difficult time in the automotive industry. 

The irony is that the commercial upset comes in when the manufacturer is having one of the best, if not the best, years in NASCAR.

Toyota’s performance in NASCAR becomes its only hope amid the global crisis

Toyota has been off to a historic start this season, becoming the first manufacturer to win five of the first six races since Chevy did it in 2007 when Toyota entered the sport. As of now, Toyota is the clear leader among the manufacturers with 513 points.

In the last 11 races, Toyota has already dominantly won seven of them. 23XI Racing's Tyler Reddick has been the star so far, and he created history when he won the first three races.

Denny Hamlin is in good form, being second in the standings behind Reddick after winning at Vegas. Alongside him, Ty Gibbs, who drives for Joe Gibbs Racing, also enjoyed his much-eluded maiden Cup win.

Bubba Wallace and Christopher Bell have been better than their previous performances.

So, the difference between Toyota on track and off track has been very stark. While the automaker continues to dominate in NASCAR, it's unfortunately grappling with issues globally.

You can read more on the Daytona Racing Digest!

Written by

Chionia Libania Colaco

Edited by

Suyashdeep Sason