January-March profit of Toyota increase by 3% year on year due to strong sales as a chip supply crisis progressively eased.
Toyota Motor Corp. reported increase in quarterly net profit of 552.2 billion yen ($4 billion), up from 533.8 billion yen ($3.9 billion) the previous quarter. Sales increased by approximately 20% year on year to 9.69 trillion yen ($72 billion).
Profit at Japan’s largest automaker plummeted 14% year on year to 2.45 trillion yen ($18 billion) in the fiscal year that ended in March. Profit for the current fiscal year is expected to climb 5.2% to 2.58 trillion yen ($19 billion).
Automobile manufacturers around the world have been harmed by a lack of computer chips. And other auto parts as a result of limitations imposed by the coronavirus pandemic. Which has slowed production in several nations.
Toyota stated that rising raw material costs had also harmed its bottom line.
Sales increased across global areas, including Japan, the United States, Europe, and other markets. Such as Asia, the Middle East, and South America, for the fiscal year that ended in March.
Toyota, situated in Aichi prefecture’s Toyota city in central Japan, sold 10.56 million vehicles in the fiscal year that ended in March. Including group makers such as Daihatsu and Hino. And plans to increase that to 11.38 million vehicles in the fiscal year that ends in March 2024.
The findings highlight the challenges that lie ahead. As well as Toyota’s enduring tenacity as the manufacturer of the Prius hybrid, Camry sedan, and Lexus luxury cars.
Toyota has admitted to slipping behind in the increasing shift to electric vehicles. Particularly in major areas such as China, the United States, and Europe.
Toyota had long insisted on supplying models that appealed to customers in diverse countries. Despite the fact that EVs accounted for only a small percentage of the market. However, this has recently altered rapidly, catapulting players such as Tesla and BYD to stardom.