Toyota Profits Surge 90% in First Nine Months of FY 2024
Toyota Motor Corp. has reported a significant boost in profits during the first nine months of the fiscal year. The Japanese automaker's strong performance is driven by cost savings, an improved sales mix, and a weak yen.
Toyota's operating income surged due to robust sales of high-margin and hybrid cars. Price revisions in Europe and North America also contributed to the growth. Notably, the company's net margin jumped from 6.9% in FY 2023 to 11.6% during the first nine months of FY 2024.
Sales revenue through the first nine months reached 34 trillion yen ($230 million), marking a 29.3% year-over-year increase. Electrified vehicles, predominantly conventional hybrid cars, accounted for 35.9% of total vehicle sales for the Toyota and Lexus brands from April to December. Toyota's strategy to focus on hybrid cars amid soft electric vehicle demand has proven successful.
Toyota has raised its full-year operating profit forecast by almost 9% for fiscal year 2024. The company's success is not isolated; other automakers like Ford Motor Co. and General Motors also plan to increase hybrid car sales in the coming years. Meanwhile, Chinese manufacturers such as BYD are stepping up their hybrid car sales, reflecting the ongoing relevance of hybrid cars in the market.
