Islamabad, Aug 4: Toyota is profitable even though it is having trouble due to a huge dispute over vehicle certification and production issues. Toyota reported stable and growing financial performance for the first quarter of the Japanese fiscal year 2025, which ran from April to June.
High Profit
With an unprecedented $8.9 billion (1.33 trillion yen) quarterly profit, the carmaker beat the prior year by 1.7%. The decline of the Japanese yen, which has raised foreign revenue, is the primary cause of this accomplishment. Furthermore, the company’s first-quarter 2019 sales reached a record $79 billion (11.8 trillion yen), up 12% year over year.
In spite of this, Toyota’s global sales dropped by 1.9% in this period. The consequences were more apparent in Japan, where a 14% drop in sales was caused by the temporary suspension of the manufacture of numerous models due to issues with vehicle certification.
Due to a problem with Japanese certification, Toyota was forced to halt production of select models. The business has now apologized and is attempting to get production back to normal. Toyota witnessed an increase in operational profit of $2.5 billion (370 billion yen) as a result of the recent jump in the value of the yen compared to the US dollar, which saw it rise over 160 yen and subsequently fall below 150 yen. Cost-cutting initiatives boosted operational profit by $367 million (55 billion yen).
US sales
In the meantime, North American sales surpassed forecasts, rising by 14.3% in the first half of the year to offset the overall loss. In the US, Toyota’s performance differs throughout various models. Sales of the Tacoma and Highlander had dropped by more than 40%, while sales of the new Crown model had reached 14,032 as of June. Sales of Camries increased by 3% to 155,242 units, demonstrating the vehicle’s enduring popularity. SUVs were the company’s best-selling cars, with sales increasing by at least 30% overall, with the Highlander being the exception. The RAV4 outsold the competition in the first half of the year with 248,295 sales.
Toyota anticipates increased sales in the future as long as Japan’s auto certification problems are resolved and sales of previously discontinued models, such the Yaris Cross and specific Corolla grades, pick back up. The company continues to believe that its future financial results—which can include even better profitability in the next quarter will be supported by the dropping yen.
