TOKYO (AFP) – Toyota said Wednesday that it enjoyed a record net profit of JPY4.94 trillion (YSD31.9 billion) in the year to March on revenues of JPY45.1 trillion, which was also an all-time high.
But the world’s largest automaker by sales warned net income would fall 27.8 per cent this financial year to JPY3.57 trillion because of investments, according to a statement.
The results for 2023-24 were helped by foreign currency effects, in particular the weak yen, as well as brisk sales, notably of hybrid vehicles.
They exceeded the firm’s forecast given in February of net profit of JPY4.5 trillion on revenues of JPY43.5 trillion.
Toyota’s previous record annual net profit was JPY2.85 trillion in 2021-22. For revenues it was JPY37.15 trillion the following fiscal year.
Last month Toyota said it sold 11.1 million vehicles across all brands in the 2023-24 fiscal year, up five per cent and the first time they have exceeded 10 million.
A big factor was a 31-per cent jump to 3.7 million in sales of hybrid vehicles — combining internal combustion engines and batteries — like the Corolla compact car and the RAV4 sports utility vehicle.
Sales of purely electric car sales were a much more modest 116,500.
Toyota pioneered hybrid cars with its popular Prius model, but critics say the company has been slow to embrace purely battery-powered engines, even as demand soars for low-emission vehicles.
Japanese automakers are now attempting to play catch-up, with Toyota aiming to sell 1.5 million EVs annually by 2026 and 3.5 million by 2030.
The company is also hoping to mass-produce solid-state batteries, a potentially hugely important technological breakthrough that could mean faster charging times and greater range.
In 2023, China overtook Japan as the world’s biggest vehicle exporter, a change fuelled by the country’s dominance in electric cars.
Toyota was also left standing by Elon Musk’s EV giant Tesla in terms of market value, although the gap — almost USD1 trillion in 2021 — has narrowed sharply.
Toyota’s market capitalisation has soared 34 per cent this year, while that of Tesla — which sold 1.8 million vehicles last year — has dived 28 per cent over the same period.
In China, the world’s biggest electric car market where local firms such as BYD dominate, Toyota only sold 1.9 million vehicles, a rise of 1.4 per cent.
