Dive Brief:
- Toyota Motor Corp. raised its full-year operating profit forecast for fiscal year 2024 by almost 9% following a strong earnings report, according to a Q3 earnings presentation released Tuesday.
- The automaker said a weak yen, strong sales of high-margin and hybrid vehicles, and price revisions in Europe and North America boosted its operating income during the first nine months of the fiscal year.
- Toyota Motor Corp. said its full-year operating profits would be bolstered further by cost savings and an improved sales mix.
Dive Insight:
Toyota Motor Corp.'s plan to sell more hybrids amid soft electric vehicle demand is paying off, at least in the short term, as other automakers cut their production, sales and financial targets.
The automaker has been criticized for lagging on electric vehicles, but it’s still a leader in electrified vehicles, which made up 35.9% of total vehicle sales for the Toyota and Lexus brands — both part of Toyota Motor Corp. — from April to December. Conventional hybrids comprised the vast majority of the automaker’s electrified vehicle sales.
Other automakers, including Ford Motor Co. and General Motors, also plan to increase hybrid sales over the next few years until EVs become more profitable. But like Toyota Motor Corp., automakers continue to invest in EVs to meet future demand and regulatory requirements.
Toyota Motor Corp.'s hybrid sales grew quickly
Toyota Motor Corp. reported 34 trillion yen ($230 million) in sales revenue through the first nine months of the fiscal year, a 29.3% year-over-year increase. Its net margin, meanwhile, rose from 6.9% in FY 2023 to 11.6% during the first nine months of FY 2024.
