Toyota sees profits double thanks to robust HEV sales, raising FY24 forecasts

Peng Chen, DIGITIMES Asia, Taipei 0

Credit: AFP

Toyota Motor experienced sales growth in all regions in the April-December 2023 period. Strong hybrid EV sales specifically helped the carmaker double its profits. The company also made upward revisions to its forecasts for fiscal year 2024, which ends on March 31. The sales revenue is estimated to reach JPY43.5 trillion (US$293.1 billion).

The Japanese automaker announced its financial results for the third quarter of the 2024 fiscal year on February 6.

Highlights of Toyota's financial results, April-Dec. 2023


Result (JPY b)

YoY change (%)

Sales revenue



Operating income



Operating margin (%)


Net income



Net income margin (%)


Source: Toyota, compiled by DIGITIMES Asia, February 2024

Toyota and Lexus delivered more than 7.9 million vehicles from April to December 2023, a 9.7% increase from the previous year. The company said electrified vehicles comprised 35.9% of its total sales. In Toyota's definition, electrified vehicles include HEVs, plug-in hybrid EVs, battery EVs, and fuel cell EVs.

The carmaker saw its operating income for the April-December 2023 period up by 102.1% year-on-year. It said the growth was due to an overall sales increase, especially for HEVs. Toyota sold more than 2.64 million HEVs in the period, a 37.9% increase from 2022.

Toyota and Lexus reached almost 1.53 million units in China's vehicle sales volume for the April-December 2023 period, a small increase compared to the previous year. The company said HEVs primarily drove the sales. However, Toyota's profits from its subsidiaries and joint ventures in China decreased slightly because of the fluctuations in foreign exchange rates and increased selling expenses.

The carmaker also revised its FY2024 forecasts. The company decreased the forecast for consolidated sales volume to 9.45 million units due to the suspension of Daihatsu shipments. It made upward adjustments to the sales revenue, operating income, and net income for the fiscal year due to strong sales across regions. The automaker's net income is projected to be JPY4.5 trillion.

In its latest financial report, Toyota stated plans to reexamine the purpose, content, safety, and quality of the company's work and strengthen its foothold. Toyota stated it will have top management go down and brainstorm with frontline workers.

Toyota also said it will promote initiatives to improve workplace environment and work styles throughout the supply chain, including tier-2 suppliers and beyond.

The above measures are viewed as the carmaker's latest response to the irregularities of its subsidiaries. The safety test scandal of Daihatsu Motor has made the carmaker suspend its production. In addition, Toyota Industries' cheating on engine certification affected Hino Motors and Toyota Motor.