Toyota Motor reported hefty profit growth for the past fiscal year ending March 2024, thanks to booming hybrid EV sales and a weaker Japanese Yen. The automaker said it plans to invest JPY2 trillion (US$13.79 billion) in its suppliers, growing the EV lineup and developing Software-Defined Vehicles (SDV).
| Highlights of Toyota FY2024 financial results | ||
Item | Result (JPY b) | YoY change (%) |
Sales revenues | 45,095.3 | 21.4 |
Operating income | 5352.9 | 96.4 |
Operating margin (%) | 11.9 | |
Income before taxes | 6,965 | 89.8 |
Net income | 4,944.9 | 101.7 |
Net income margin (%) | 11 | |
Source: Toyota, compiled by DIGITIMES Asia, May 2024
According to Toyota's FY2024 financial report released on May 8, growing demand for HEVs and price revisions in North American and European markets favored the company's operating income. A weak yen also benefited its earnings outside Japan.
Toyota and Lexus sold over 10 million cars in fiscal 2024 ending in March, up 7.3% from the previous year. The carmaker said sales volume increased worldwide except Japan, where Daihatsu Motor and Toyota Industries Corporation suspended deliveries due to scandals.
Electrified vehicles accounted for 37.4% of Toyota's total sales in the past fiscal year, with HEV contributing 3,594,000 cars.
For fiscal 2025 ending in March 2025, vehicle sales of Toyota and Lexus are expected to remain at a similar level to the previous year. However, the portion of electrified vehicles will likely rise to 46.4%.
Toyota said it plans to spend JPY2 trillion in fiscal 2025 on "human resources" and investment in transforming into a mobility company. Therefore, its operating income is expected to decline to JPY4.3 trillion.
According to Toyota, JPY380 billion of the investment will help suppliers reduce labor costs and improve their working environment. At a press conference following the release of financial results, Toyota President Koji Sato said the company's performance was backed by a strong supply chain, which Toyota is determined to protect and develop, Nikkei Asia reported.
The automaker will spend JPY1.7 trillion in capital expenditure and R&D expenses to develop battery EVs, hydrogen vehicles, and SDVs.
Similar to many legacy carmakers, Toyota has faced fierce competition in China. The company managed to sell more than 1.9 million cars in fiscal 2024, a comparable level to the previous year. Toyota said steady demand for HEVs drove its sales.
According to Nikkei Asia, Yoichi Miyazaki, Toyota's chief financial officer, said on Wednesday that the automaker will try to distance itself from the price war in the world's largest car market. He added that China is seeing an oversupplied market with cheap BEVs.
