Toyota Motor Corporation has announced a 9% increase in its full-year operating profit forecast, now anticipating earnings of 4.7 trillion yen ($30.7 billion) for the fiscal year ending March 2025, up from the previously projected 4.3 trillion yen.
This adjustment reflects the automaker’s confidence in navigating potential U.S. tariffs and other market challenges.
The company attributes this optimistic outlook to several strategic measures, including controlling incentives, implementing price increases, and stabilising production.
Additionally, Toyota expects to benefit from a weaker yen, which enhances the competitiveness of its exports.
Despite this positive forecast, Toyota reported a 28% decline in operating profit for the third quarter, totaling 1.22 trillion yen, which fell short of analysts’ expectations of 1.42 trillion yen.
This marks the second consecutive quarterly profit decline for the automaker.
Regionally, Toyota faced a 63% decrease in operating income in North America over the first nine months of the financial year, primarily due to reduced sales volume and increased personnel-related costs.
China’s operating income also declined, pressured by higher marketing expenses as the company strived to maintain its market share amid intense competition from local brands.
In a strategic move to strengthen its position in the electric vehicle (EV) market, Toyota announced plans to establish a wholly owned company in Shanghai.
This new venture will focus on developing and producing EVs and batteries for its luxury Lexus brand, with production slated to commence in 2027 and an initial capacity of approximately 100,000 units per year.
Last week, Toyota reported global group unit sales of 10.8 million vehicles for 2024, securing its status as the world’s best-selling automaker for the fifth consecutive year.
Following the earnings release, Toyota’s share price experienced volatility, initially declining before recovering to a 4.7% increase, closing at 3,008 yen as of 0521 GMT.
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