Toyota released significantly better-than-expected results for the first quarter of 2023/24 (April-June), thanks in particular to the renewed production continuity, the recovery of the global auto market and the continued weakness of the yen. The group’s net profit in the period thus jumped by 78% to 1,311.3 billion yen (about 8.4 billion euro). Toyota, however, has left its annual targets unchanged.
The world‘s number-one-selling automaker said operating profit for the three months to June was $7.85 billion, up 94% from a year earlier, beating market expectations. .
The challenge for the Japanese giant now is to implement its ambitious plan to better compete in the global battery-powered vehicle market, as well as detailing its hydrogen strategy.
Toyota needs to hurry, particularly in China, where the rise of local competitors and the price war from Tesla and others is eroding its market share.
Toyota admitted that competition in China had become “extremely stiff,” adding that fluctuations in exchange rates and its response to price cuts in the world‘s most important auto market negatively impacted results.