Toyota Motor Corporation announced a historic milestone, reporting a record net profit of 4.94 trillion yen (approximately $31.82 billion USD) for the fiscal year 2023, ending in March.
This achievement marks a significant doubling from the previous year’s figures, spurred by strong demand and favorable currency exchange rates due to the yen’s depreciation.
In a year of robust performance, Toyota’s operating profit also saw an impressive rise, almost doubling to 5.35 trillion yen, setting a new record for the Japanese auto industry. This financial accomplishment makes Toyota the first Japanese company to surpass the 5-trillion-yen threshold in operating profit within a fiscal year.
During the same period, Toyota experienced a substantial 21.4 percent increase in sales, reaching 45.1 trillion yen. This growth is attributed to the rising popularity of the company’s hybrid vehicles and strong global sales performance. The company’s consolidated vehicle sales, which include results from subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., climbed by 5.0 percent to a total of 11.09 million units sold worldwide.
Despite the record-breaking results, Toyota has set conservative expectations for the fiscal year 2024. The automaker projects a 27.8 percent decrease in net profit, anticipating it to drop to 3.57 trillion yen. This forecast reflects the challenges and uncertainties in global markets, including potential economic downturns and fluctuating currency exchange rates. Additionally, Toyota expects a modest 2-percent increase in sales for the coming year.
The company also revised its global sales outlook downward for the current fiscal year, projecting a total of 10.95 million vehicles, which represents a 1.3 percent decrease from the previous year. This adjustment is aligned with Toyota’s strategic planning amid evolving market dynamics and varying consumer demands across its major markets.
Toyota’s record profits and its cautious outlook for the future highlight the volatile nature of the global auto industry, influenced by economic shifts, technological advancements, and the increasing adoption of eco-friendly vehicles. As Toyota navigates these changes, it continues to invest in innovation, particularly in electric and hybrid technologies, aiming to maintain its leadership in a rapidly transforming sector.
The announcement came amid a strengthening yen, with the current exchange rate at 155.23 yen to the U.S. dollar, impacting the financial calculations and future revenue projections for the giant automaker.
