Toyota, the Japanese auto giant, has reported a record annual net profit exceeding $30 billion, driven by a weak yen and robust hybrid vehicle sales. However, the company warns of a less spectacular year ahead due to investments in growth areas like electric and hydrogen cars, as well as in human capital.
In the fiscal year ending in March, Toyota’s net profit doubled to 4.94 trillion yen ($31.9 billion), with revenues reaching an all-time high of 45.1 trillion yen, up 21.4 percent. The success is attributed to the company’s commitment to achieving carbon neutrality and promoting hybrid cars, according to chief financial officer Yoichi Miyazaki.
Toyota’s strategy of emphasizing hybrid vehicles, led by the iconic Prius model, has paid off significantly. Hybrid vehicle sales surged by 31 percent to 3.7 million units, including popular models like the Corolla and RAV4. Meanwhile, purely electric car sales remained modest at 116,500 units.
Despite criticism for being slow to adopt purely battery-powered vehicles, Toyota’s approach seems to resonate with consumers who are hesitant about pure EVs due to concerns about pricing, reliability, range, and charging infrastructure.
While China has surpassed Japan as the world’s largest vehicle exporter, driven by its dominance in electric cars, Toyota is committed to catching up. The company aims to sell 1.5 million EVs annually by 2026 and 3.5 million by 2030, while also exploring solid-state batteries for faster charging times and greater range.
Toyota’s unit sales saw significant growth in North America, Europe, and Japan, despite production halts at its Daihatsu unit. However, in China, where local firms like BYD dominate the electric car market, Toyota’s sales increased only modestly by 1.4 percent.
Although Toyota still faces challenges in the rapidly evolving automotive industry, including competition from companies like Tesla, its share price has soared this year, indicating investor confidence in its future strategies and innovations.
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