Toyota Motor Corp. has reported a significant increase in its net profit for the fiscal year that ended in March. The company’s annual profit doubled to 4.9 trillion yen ($31.9 billion) from 2.45 trillion yen the previous year, with sales also rising by 21% to 45 trillion yen ($290 billion). Toyota credited strong vehicle sales and a favorable exchange rate for driving these positive results, with global sales reaching 9.4 million vehicles compared to 8.8 million vehicles in the previous fiscal year. The company highlighted the success of its hybrid models and emphasized its commitment to offering a variety of electric vehicles, including battery EVs, plug-ins, and fuel cell models.
In the January-March quarter, Toyota saw a further increase in net profit, reaching 997.6 billion yen ($6.4 billion) compared to 552 billion yen in the previous year. Sales for the quarter also rose to 11 trillion yen ($71 billion) from 9.7 trillion yen. Looking ahead, Toyota has set a target to sell 9.5 million vehicles in the current fiscal year, with expectations of growth in the U.S. and Asian markets. The company plans to make key investments in research and technology to support long-term growth, with a focus on developing ecological vehicles. Toyota’s net profit for the fiscal year ending in March 2025 is projected to decrease by 28% to 3.57 trillion yen ($23 billion), with investments also planned in workers at suppliers and dealers to enhance “human capital.”
Chief Executive Koji Sato emphasized the need for Toyota to continue evolving as a mobility company and take on challenges more dramatically than its traditional approach of incremental improvements known as “kaizen.” Sato highlighted the importance of developing ecological vehicles while upholding Toyota’s reputation for safety and quality. The auto industry is undergoing a shift towards environmentally friendly vehicles, particularly in markets like China where electric vehicles (EVs) are prevalent. Some analysts have suggested that Toyota may be lagging behind in this transition. The company also faced challenges during the pandemic, including a shortage of computer chips and other components which impacted production, but has since rebounded from these setbacks.
Despite the positive financial results, Toyota recognizes the need to adapt to the changing landscape of the auto industry. The company is focused on solidifying its position in the market by balancing innovation with its longstanding commitment to safety and quality. Toyota’s strategic investments in technology and human capital reflect its efforts to stay ahead of competition and maintain its position as a leading automaker. As the demand for ecological vehicles continues to grow, Toyota aims to leverage its expertise and resources to meet the evolving needs of customers worldwide. By embracing new technologies and sustainable practices, Toyota is positioning itself for sustained growth and success in the future.
