Toyota global sales up 5.5%

Toyota Motor Corporation’s sales for the year ending March rose 5.5 per cent from 12 months earlier to 50.68 trillion yen – or about NZ$544 billion – making it the first Japanese company to post annual sales exceeding that level, helped by strong demand for hybrid vehicles and price revisions.

Its net profit for the 2025 financial year dropped by 19.2 per cent to 3.85 trillion yen, partly due to higher US tariffs, while operating profit fell 21.5 per cent. It reported on May 8 that the tariff impact on its operating profit totalled 1.38 trillion yen.

The Toyota group's vehicle sales, including those of its subsidiaries, rose by 2.5 per cent to 11.28 million units on the back of solid demand in major markets, including Japan.

The latest financials come after President Donald Trump imposed a 27.5 per cent tariff in April last year on cars imported from Japan, up from 2.5 per cent. It was later negotiated down to 15 per cent in July and was implemented in September.

Toyota’s president Kenta Kon, pictured, says: “The upward trend in the break-even sales volume has yet to show signs of slowing.”

He adds the company “remains in a position to step on the accelerator, meaning we’re still able to keep investing steadily in growth. Rather than hitting the brakes, we believe the earnings put us in a position to identify areas of waste and change and transform our structure step by step.”

For the current business year through to next March, it projects its net profit will fall 22 per cent, due partly to the impact of the Middle East conflict, with sales rising by 0.6 per cent. Operating profit is predicted to drop by 20.3 per cent.

The group forecasts worldwide sales of 11.18 million units in 2026/27, down by 0.9 per cent, while hybrid vehicles are projected to exceed five million units. Battery-electric sales are expected to grow by almost two-and-a-half times with plans to increase such deliveries in China, Europe and North America.