Reuters: Toyota becomes the first Japanese company whose operating profit exceeds the threshold of 5,000 billion yen – 05/08/2024

Toyota’s operating profit in the fiscal year ended March 31, 2024, nearly doubled from the previous year to 5.35 trillion yen ($34.5 billion), becoming the first Japanese company to break the 5 trillion yen mark, thanks to robust demand post-pandemic and the depreciation of the local currency, reports Reuters.

The top-selling automaker also announced a doubling of annual net profit to a record 4.94 trillion yen after sales rose 21.4 percent to a record 45.1 trillion yen, according to the source.

These developments come despite quality scandals at its subsidiary Daihatsu Motor Co and its affiliate Toyota Industries Corp, the quoted source added.

For the current fiscal year, which will end on March 31, 2025, the company expects a decline in net profit of 27.8% to 3.57 trillion yen, amid increased investments in human resources, new technologies and supply chains. Sales should rise by 2%, to 46,000 billion yen, reports the mentioned press agency.

Toyota’s vehicle sales, including those of its subsidiaries Daihatsu and Hino Motors Ltd, rose 5 percent to 11.09 million units, Reuters notes.

The recent decline in demand for electric vehicles (EV) globally, amid the reduced number of charging stations, has affected car manufacturers, the source reports.

In the case of the Toyota and Lexus brands, sales of hybrid vehicles (petrol-electric) rose by 32.1%, to 3.59 million units. The company also benefited from the depreciation of the yen, which boosted operating profit by ¥685 billion. Battery electric vehicles accounted for just 1% of Toyota’s global sales, or about 116,500 units, below the initially announced target of 202,000 EVs. In this fiscal year, the goal is to sell 171,000 EVs, according to the cited source.

For the current fiscal year, the company expects to sell 10.95 million vehicles globally, a decline of 1.3% compared to the previous year, according to the quoted press agency.

This year, Toyota plans to invest 1.7 trillion yen in areas such as artificial intelligence and software, reports Reuters.