Operating profit at Japanese carmaker Toyota Motor fell 20 percent to 1.16 trillion yen (CZK 178 billion) in the second quarter of its fiscal year. It recorded its first quarterly decline in two years. This was due to weaker sales and production problems in two important markets, namely Japan and the United States. The company announced this in a press release today.
Competition from Chinese brands
The carmaker was on a record profit streak earlier this year. Its focus on hybrid models helped it benefit from growing consumer interest in more affordable vehicles than electric cars. But strong competition from Chinese brands, the suspension of production of two models in the U.S. and quality problems at the Hino Motors division that makes trucks and buses have begun to slow growth in recent months.
The results are roughly in line with expectations of analysts in an LSEG poll, who were expecting a profit of 1.2 trillion yen. Sales rose 9.7 percent to 11.44 trillion yen (1.75 trillion kronor) in the three months to the end of September.
Weaker production
The group sold 5.37 million vehicles in the six months of its fiscal year, down four percent from the same period last year. Sales in Japan fell 12.4 percent, mainly due to the halt in production of several models following a certification scandal. The 2025 fiscal year began in April.
Due to weaker production in the first half of the year, Toyota cut its car production target for the current fiscal year by one percent to 10.85 million units. That’s 240,000 fewer than the previous year. But the company reaffirmed its operating profit outlook for the full fiscal year 2025 at 4.3 trillion yen. For sales, it expects to grow two percent to 46 trillion yen.
Source: ČTK
