Toyota beats forecast amid pandemic, projects further growth

15-May-2021 Intellasia | JapanTimes | 5:02 AM Print This Post

Toyota Motor Corp. has managed to navigate the pandemic and related economic fallout for fiscal 2020, boosting its net profit by 10.3 percent from the previous year to JPY 2.25 trillion, the automaker said Wednesday.

The firm also revealed a projection that about 80 percent of new car sales by 2030 will be electric vehicles, including hybrids, reflecting its efforts to curb greenhouse gas emissions.

For the current fiscal year through March 2022, Toyota projects the following:

Sales of JPY 30 trillion, up 10.2%

Operating profit of JPY 2.5 trillion, up 13.8%

Net profit of JPY 2.3 trillion, up 2.4%

“We expect unit sales to make a strong recovery. This will be a major factor” in increased profit, Kenta Kon, Toyota’s chief financial officer, said during an online news conference.

For fiscal 2020, the world’s largest automaker beat its forecast of securing JPY 2.2 trillion in operating profit, ending up with more than four times its initial projection of JPY 500 billion, which was set a year ago amid heightened uncertainties over the COVID-19 outbreak. The firm eventually raised the forecast to JPY 2 trillion in February.

The firm posted sales of JPY 27.21 trillion, down 8.9%.

Japanese carmakers had initially feared that the economic damage caused by the pandemic would last for the entire fiscal year, which ended in March. But looking back, most of them only suffered a serious blow in the first quarter, between April and June 2020.

As auto demand started bouncing back in crucial markets such as China and the United States in the latter half, Toyota and other carmakers showed a robust recovery in sales.

In April this year, Toyota said it posted unit sales of 982,912 in March a record for a single month up 44.2 percent compared with the same month last year, thanks to strong performance in China and North America.

The steady sales are partly attributed to well-executed launches of new models, such as the Corolla and RAV4, throughout the year.

Toyota Motor Corp. has managed to navigate the pandemic and related economic fallout for fiscal 2020, boosting its net profit by 10.3 percent from the previous year to JPY 2.25 trillion, the automaker said Wednesday.

The firm also revealed a projection that about 80 percent of new car sales by 2030 will be electric vehicles, including hybrids, reflecting its efforts to curb greenhouse gas emissions.

For the current fiscal year through March 2022, Toyota projects the following:

Sales of JPY 30 trillion, up 10.2%

Operating profit of JPY 2.5 trillion, up 13.8%

Net profit of JPY 2.3 trillion, up 2.4%

“We expect unit sales to make a strong recovery. This will be a major factor” in increased profit, Kenta Kon, Toyota’s chief financial officer, said during an online news conference.

For fiscal 2020, the world’s largest automaker beat its forecast of securing JPY 2.2 trillion in operating profit, ending up with more than four times its initial projection of JPY 500 billion, which was set a year ago amid heightened uncertainties over the COVID-19 outbreak. The firm eventually raised the forecast to JPY 2 trillion in February.

The firm posted sales of JPY 27.21 trillion, down 8.9%.

Japanese carmakers had initially feared that the economic damage caused by the pandemic would last for the entire fiscal year, which ended in March. But looking back, most of them only suffered a serious blow in the first quarter, between April and June 2020.

As auto demand started bouncing back in crucial markets such as China and the United States in the latter half, Toyota and other carmakers showed a robust recovery in sales.

In April this year, Toyota said it posted unit sales of 982,912 in March a record for a single month up 44.2 percent compared with the same month last year, thanks to strong performance in China and North America.

The steady sales are partly attributed to well-executed launches of new models, such as the Corolla and RAV4, throughout the year.

https://www.japantimes.co.jp/news/2021/05/12/business/corporate-business/toyota-earnings/

 

Category: Japan

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