Toyota changed the game: 34.5 billion dollars profit!

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This is the strongest result for a Japanese company – not just automotive – in history

Toyota Motor went above and beyond his own advance prediction and reported a record 5.35 trillion yen ($34.5 billion) in operating profit for 2023, reported. In Japan, the fiscal year ends on March 31. For the first time in history, a Japanese company exceeds the 5 trillion yen operating profit mark – not only in the automotive sector, but in general. An updated forecast from February pointed to a more modest financial result, but the January to March quarter turned out to be much stronger than expected, with a 78% rise in operating profit. One reason is the weaker yen, which has stimulated exports. The other is in the cooling of interest in electric cars in Europe and the US, which has redirected many customers to traditional Toyota hybrids.

However, the Japanese company warned that it expects at least a 20% drop in operating profit for the next financial year, which ends in March 2025. This forecast is based on upcoming major investments in the network of sub-suppliers, in human resources and in new directions for strategic development. “Although our operations are being run very efficiently, there are still things that can be improved,” explained new CEO Koji Sato. In addition, the company plans to invest 1.7 trillion yen ($10.9 billion) in areas such as artificial intelligence and software development. For two decades now – since the launch of the first Prius – Toyota has been betting mainly on so-called self-charging hybrids. Last year, they accounted for a third of the company’s total of 10.3 million sales. Pure electric cars are only 1% of all units sold.

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However, Toyota plans to strengthen its electric range as well to catch up on its lagging behind in the Chinese market. The company will partner with Chinese giant Tencent for the purpose.