Japanese auto big Toyota posts file internet revenue, ET Auto

Toyota reported file annual internet revenue of greater than USD 30 billion on Wednesday however the world’s largest automaker by gross sales warned that the present 12 months can be much less spectacular.

Helped by a weak yen and robust hybrid automobile gross sales, the Japanese big’s backside line doubled to 4.94 trillion yen (USD 31.9 billion) within the 12 months to March whereas revenues rose 21.4% to 45.1 trillion yen, additionally an all-time excessive.

“Beneath the banner of ‘carbon is the enemy’, Toyota has finished what it may well to attain carbon neutrality and make hybrid automobiles extra prevalent,” stated chief monetary officer Yoichi Miyazaki.

“For the reason that debut of the Prius mannequin, that effort has step by step paid off, creating the notion even within the American market that hybrids are the principle participant,” Miyazaki instructed reporters.

For this 12 months it expects internet revenue of three.57 trillion yen, down 27.8%, due to investments in “development areas” similar to electrical and hydrogen automobiles, in addition to in “human capital”.

Gross sales will rise 2.0% to 46 trillion yen.

“We’ve to just accept that there are specific areas the place we’re considerably behind China … However as a Japanese firm preventing within the auto business, we all know we can’t let this lead widen additional. We’re going to consider how you can pull off a game-changer,” Miyazaki stated.

Toyota final month stated it offered 11.1 million automobiles throughout all manufacturers within the 2023-24 fiscal 12 months, up 5% and the primary time they’ve exceeded 10 million.

An enormous issue was a 31% soar to three.7 million in gross sales of hybrid automobiles — combining inner combustion engines and batteries — just like the Corolla compact automobile and the RAV4 sports activities utility automobile.

Gross sales of purely electrical automobile gross sales have been a way more modest 116,500.

– Hybrid pioneer –

Toyota pioneered hybrid automobiles with its common Prius mannequin, nevertheless it and different Japanese automakers have been criticised for being gradual to embrace purely battery-powered automobiles.

However its technique seems lastly to be paying off with indicators that buyers are going chilly on pure EVs due to excessive costs and worries about reliability, vary and a scarcity of charging factors.

In 2023, China overtook Japan because the world’s largest automobile exporter, a change fuelled by the nation’s dominance in electrical automobiles.

Toyota was additionally left standing by Elon Musk’s EV big Tesla by way of market worth, however the hole — virtually USD 1 trillion in 2021 — has now narrowed sharply.

Toyota’s share value has soared 34% this 12 months, whereas that of Tesla — which offered 1.8 million automobiles final 12 months — has dived 28% over the identical interval.

Toyota is nevertheless nonetheless aiming to promote 1.5 million EVs yearly by 2026 and three.5 million by 2030.

It’s also hoping to mass-produce solid-state batteries, a doubtlessly massively necessary technological breakthrough that would imply quicker charging occasions and better vary.

Toyota’s unit gross sales rose 13.8% in North America in 2023-24, whereas climbing 10.8% in Europe and eight.7% in Japan, regardless of a manufacturing halt at its Daihatsu unit.

In China, the world’s largest electrical automobile market the place native companies similar to BYD dominate, Toyota offered 1.9 million automobiles, an increase of just one.4%.

Toyota shares closed down 0.55% at 3,579.0 yen in Tokyo.

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