[1/3] Photo archives of the Toyota logo. /PHOTO PRIZE LE 5 April 2023 NEW YORK, ATATS-UNIS/REUTERS/Andrew Kelly
- Full year operating profit is expected to rise to $22.2 billion
- New FY targets 10.1 million vehicle production, up 11% Y/Y
- Q4 profit jumps 35%, beats forecasts; record annual revenue
- Shares closed up 0.8% after rising as much as 2.5%
TOKYO, May 10 (Reuters) – Toyota Motor Corp (7203.T) said on Wednesday it expected operating profit to climb 10% this business year on a fivefold jump in pure electric vehicle (EV) sales. Supply chain disruption due to shortage of chips.
The development plan was unveiled by new CEO Koji Sato, who was installed last month, and signals a more aggressive push towards electrification by the Japanese firm, which has previously taken a slow approach to all-electric cars. was adopted, arguing that its strategy would provide more consumer choice. ,
The world’s biggest carmaker forecast sales of battery EVs, including its luxury Lexus brand, will reach 202,000 worldwide in this business year to March 2024 – more than five times the 38,000 units last year.
Toyota’s operating profit will rise to 3.0 trillion yen ($22.2 billion) this fiscal year, in line with analysts’ average forecast of 3.02 trillion yen.
That target rose by more than a third to 626.9 billion yen after reporting operating profit for the fiscal fourth quarter through March — easily ahead of the average 553.46 billion yen profit estimated by 10 analysts, according to Refinitiv data.
Toyota’s strategy has seen it come under pressure in China, the world’s biggest auto market, where nimble local brands such as BYD Co Ltd (002594.SZ) have gone aggressively with battery EVs, undermining the dominance of established foreign brands. It is done.
But Sato said that demand for purely battery-powered vehicles in China largely represents a new need in the market and is separate from demand for hybrid vehicles.
“We want to work on both sides.
The profit target was helped by a weaker yen pushing up the value of overseas sales, and higher production volumes that more than offset the impact of rising material costs. Revenue rose to a record 37.15 trillion yen for the business year ending March this year, reflecting the impact of the weaker yen.
Toyota shares, which were nearly flat before the earnings release, soared immediately upon their publication and rose as much as 2.5% before paring gains of 0.8%.
EV acceleration
The new EV sales target, which is still a fraction of industry leader Tesla’s (TSLA.O), would push Toyota’s battery EVs to roughly 2% of total sales volume, up from just 0.4 of its total vehicle sales last fiscal year. % Was.
“We expect an increase in (total) sales volume across all regions and an increase in production volume to 10.1 million (vehicles), such as … improving semiconductor supply,” Toyota said in a statement. This would represent a production increase of 11% over the previous year.
Seeking to step up its game in the EV sector, where it has been ousted by newer Chinese automakers as well as Tesla, Toyota has said it plans to introduce 10 new EVs while aiming for 1.5 million EV sales by 2026. Will introduce battery operated vehicles.
Toyota will intensify its effort to provide “appropriate” solutions for different regions, Sato said, adding that the new models will range from compact commercial to luxury vehicles and will primarily focus on the United States and China.
The previously announced dedicated unit to focus on next-generation battery EVs, known as the BEV Factory, will consist of three platforms focusing on vehicle chassis, electronics and software, he said.
The company decided to eliminate a zero emissions vehicle design division, known as the ZEV factory, that it had established in Japan.
While Toyota has managed to retain its crown as the world’s best-selling automaker, its subsidiary Daihatsu faces a number of challenges, including safety testing problems and growing pressure from green investors.
($1 = 135.0500 yen)
Reporting by Daniel Leusink; Editing by Kenneth Maxwell
Our Standards: The Thomson Reuters Trust Principles.
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