Tokyo (Reuters) – Japanese car manufacturer Toyota Motor noted its operating profit forecast on Wednesday 9% for the whole financial year, testifying to its confidence in its ability to absorb the impact of possible customs duties Americans.
The world’s leading automaker in terms of sales, noted its profit forecasts for the current year until March 2025 to 4.700 billion yen (29.50 billion euros) against 4.300 billion yen previously planned.
This revision reflects the group’s efforts to strengthen its capacity to generate a profit by limiting incentives, with an increase in prices and stabilization of production, said Toyota in its presentation documents. The group also expects to benefit from the weakness of the yen.
Toyota carried out this revision despite a quarterly profit in the third quarter lower than expectations, which represents the second consecutive quarterly decrease.
The operating profit for the three months closed at the end of December amounted to 1,220 billion yen, a drop of 28% compared to the previous year. Analysts were tabling an average of 1,420 billion yen, according to a consensus compiled by LSEG.
During the last quarters, Toyota’s benefit was stimulated by the high demand for hybrid vehicles in the United States and other important markets.
In North America, especially in the United States, its main market, operating profit has dropped 63% over nine months, penalized by the drop in sales and the increase in wage costs.
In China, operating profit also fell into this period in a context of strong competition from Chinese brands.
Toyota has announced the creation of a 100% owned company in Shanghai, dedicated to the development and production of electric vehicles and batteries for its luxury lexus brand. Production will start in 2027 and will have an initial capacity of around 100,000 units per year.
The action of the company, which had increased by 1.5% just before the publication of the results, first dropped after the publication, but then straightened up. Around 05:21 GMT, it was up 4.7% to 3,008 yen.
(Written by Daniel Leussink, Elena Smirnova, edited by Kate Entringer)
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