Toyota Raises Annual Profit Outlook as Hybrid Demand Surges
Toyota reported a 34% increase in quarterly income and raised its annual profit forecast to 3.9 trillion yen driven by strong hybrid vehicle sales.
Toyota reported its first profit increase in six quarters, posting a 34% climb in income for the July-September period with an operating profit of 1.13 trillion yen. Following the announcement, the automaker raised its annual operating profit outlook by 15% to 3.9 trillion yen for the year ending March.
Growth was driven by a weaker yen and strong demand for high-margin hybrid vehicles. This strategic focus on hybrid technology over a full transition to electric vehicles allowed the company to maintain market share in the United States despite competition from Chinese EV manufacturers. These gains offset declining sales in China and the Middle East.
Chief Accounting Officer Takanori Azuma detailed how the company is offsetting material price surges and instability in the Middle East. In response to the financial results, Toyota shares rose more than 14% in Tokyo trade, marking the company's largest one-day gain since 2008.
