Despite significant challenges due to a major dispute over vehicle certification and production concerns, Toyota has posted strong financial gains.
For the first quarter of Japan’s fiscal year 2025 (April–June), Toyota reported stability and growth.
Record Profit
The automaker achieved a record quarterly profit of $8.9 billion (1.33 trillion yen), up 1.7% from the previous year.
The depreciation of the Japanese yen, which boosted overseas revenues, was a key factor. Additionally, first-quarter sales rose by 12% year-over-year to a record $79 billion (11.8 trillion yen).
Despite this, global sales declined by 1.9%, with Japan seeing a 14% drop due to vehicle certification issues that temporarily halted production of several models. Toyota has since apologized and is working to normalize production.
Moreover, the yen’s recent value fluctuations against the US dollar contributed to a $2.5 billion (370 billion yen) rise in operating profit, along with $367 million (55 billion yen) from cost-cutting measures.
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Sales in the US
In North America, sales increased by 14.3% in the first half of the year, offsetting overall losses. While the new Crown model sold 14,032 units through June, sales of the Tacoma and Highlander decreased by over 40%.
Additionally, Camry sales increased by 3% to 155,242 units. SUVs, particularly the RAV4, were the top sellers, with RAV4 sales reaching 248,295 units in the first half.
Furthermore, Toyota anticipates higher future sales as issues with Japan’s auto certification are resolved and discontinued models like the Yaris Cross and certain Corolla grades return. The company believes the weakening yen will continue to bolster financial results, potentially leading to even higher earnings in the next quarter.
