Why Toyota says its record profits won’t last

Japanese car elephantine Toyota has recorded the highest yearly nett net fig successful its history, but it’s expecting profits to autumn arsenic it increases spending connected aboriginal technology.

Toyota CEO Koji Sato this week announced the carmaker’s results for the 2024 Japanese fiscal twelvemonth (April 1, 2023 to March 31, 2024), posting profits of 5.35 trillion yen – equivalent to A$52.3 billion, and a 49 per cent year-on-year increase.

According to Reuters, it’s the archetypal clip immoderate Japanese institution has exceeded full-year profits of 5 trillion yen ($49 billion).

Throughout the fiscal year, Toyota produced 9.97 cardinal vehicles (up 9.2 per cent) crossed its namesake and Lexus brands, portion signaling 10.3 cardinal income (up 7.3 per cent).

However, Reuters reports Toyota has warned it could spot its profits autumn by arsenic overmuch arsenic 20 per cent this fiscal year, mostly owed to investments successful electrification and artificial quality (AI).

According to Automotive News Europe, Toyota said it volition walk 1.7 trillion yen ($16.6 billion) connected “growth technologies” crossed the adjacent 12 months, representing a 42 per cent summation connected its existent concern successful electrification and AI.

It comes arsenic Toyota reported 3.7 cardinal hybrid vehicles sold past fiscal twelvemonth (up 32 per cent), accounting for much than 1 3rd of its full sales.

The carmaker expects hybrid income to turn by different 25 per cent this year, which would bring the yearly tally to 4.65 cardinal sold.

Electric vehicles (EVs) by examination contributed conscionable 116,654 income to the total, owed successful portion to Toyota’s delayed rollout of battery-only cars.

Globally, Toyota’s EV offerings are presently constricted to the bZ4X electrical SUV (and its Lexus RZ450e twin-under-the-skin), the Lexus UX300e, the Chinese-market Toyota bZ3 sedan, and electrical versions of the Japanese ProAce van family, though a wider scope of bZ EVs are coming.

Toyota’s awesome fiscal twelvemonth results were announced conscionable days aft its Australian income results for the archetypal 4 months of the twelvemonth were published successful VFACTS.

The marque has sold 77,009 vehicles successful Australia truthful acold passim 2024, a 45 per cent summation connected the aforesaid play past year.

It went connected to merchantability 215,240 vehicles successful 2023, conscionable 9.9 per cent shy of its grounds 238,983 income successful 2008.

Toyota hasn’t been without hiccups of precocious though, having faced aggregate scandals impacting 3 of its 4 brands successful Japan.

In December 2023, Toyota’s tiny car specializer marque Daihatsu suspended manufacturing successful Japan pursuing the find that it falsified information information and utilized unauthorised information investigating procedures, dating backmost to 1989.

In January, the Toyota Motor Corporation (TMC) announced it had discovered “irregularities” during motor certification investigating of 3 turbo-diesel engines produced by its subsidiary Toyota Industries Corporation (TICO).

The carmaker said the 3 affected engines were recovered to person been fitted with motor power units (ECU) for investigating which differed from those successful wide production, resulting successful an probe by Japanese authorities to find whether the engines were compliant – and if the marque had deliberately cheated.

Though shipments of vehicles powered by the 3 engines – which includes the Australian-delivered HiLux, LandCruiser 300 Series, LandCruiser 70 Series, Fortuner, HiAce and Granvia and Lexus LX – were paused, the carmaker was later cleared of misconduct by Japanese officials.

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