Toyota is bracing for a significant increase in operating profit despite facing production challenges and declining output. The automaker is expected to report a 21% rise in operating profit for the first quarter, reaching 1.35 trillion yen ($8.7 billion), driven by a weaker yen and strong demand for hybrid vehicles in the U.S. This positive outlook contrasts with recent difficulties in production and sales.
In June, Toyota's global production fell by 12.9% to 795,862 vehicles, marking the sharpest drop since December 2022. This decline is attributed to a certification scandal in Japan and heightened competition in China, where domestic electric vehicle manufacturers have aggressively cut prices. Output in China plummeted by 21.7%, continuing a trend of significant monthly declines.
The company’s home market experienced an 18.8% decrease in production following irregularities in safety certification processes uncovered by the transport ministry. Additionally, production in North America and Europe saw drops of 6.2% and 6.6%, respectively, due to fewer production days compared to last year.
Despite these production setbacks, Toyota's global sales fell only 5.1% during June, with notable declines in Japan and China. Over the first half of the year, global production decreased by 5%, and worldwide sales dipped by 0.9%. The company’s ability to maintain robust profit expectations underscores its resilience in navigating current industry challenges.
(Source:www.business-standard.com)
In June, Toyota's global production fell by 12.9% to 795,862 vehicles, marking the sharpest drop since December 2022. This decline is attributed to a certification scandal in Japan and heightened competition in China, where domestic electric vehicle manufacturers have aggressively cut prices. Output in China plummeted by 21.7%, continuing a trend of significant monthly declines.
The company’s home market experienced an 18.8% decrease in production following irregularities in safety certification processes uncovered by the transport ministry. Additionally, production in North America and Europe saw drops of 6.2% and 6.6%, respectively, due to fewer production days compared to last year.
Despite these production setbacks, Toyota's global sales fell only 5.1% during June, with notable declines in Japan and China. Over the first half of the year, global production decreased by 5%, and worldwide sales dipped by 0.9%. The company’s ability to maintain robust profit expectations underscores its resilience in navigating current industry challenges.
(Source:www.business-standard.com)