TOKYO: Toyota Motor has increased its full-year operating profit projection by nearly 9%, driven by elevated sales volumes and a depreciating yen which bolstered its third-quarter performance, local media reported on Tuesday. The leading global automaker now anticipates a profit of 4.9 trillion yen ($32.99 billion) for the current fiscal year, up from the previously expected 4.5 trillion yen.
This optimistic outlook stands in contrast to the cautious forecasts issued by many competitors, who have cited slowing sales growth and implemented production cuts amidst high interest rates and waning demand for electric vehicles.
For the three months ending on December 31, Toyota reported an operating profit of 1.68 trillion yen, marking a remarkable 75.7% increase from the previous year’s 956.7 billion yen. This surpassed the average profit estimate of 1.3 trillion yen as polled by LSEG from nine analysts.
Despite lagging behind in battery-powered electric vehicles, Toyota is poised to outshine its rivals this year, buoyed by strong demand for its pioneering hybrid vehicles, notably the Prius, introduced over a quarter-century ago.
Securing its position as the world’s top-selling automaker for the fourth consecutive year, Toyota achieved record annual sales of 11.2 million vehicles in 2023. However, the company is grappling with a series of scandals involving product certification test irregularities within its group companies, which pose a threat to its esteemed reputation for quality and safety.
Last week, Toyota’s chairman issued an apology for the inconvenience and concern stemming from misconduct at two subsidiaries and an affiliate.
