JAKARTA - Toyota has made a new history in Japan. Sales of the automotive giant in fiscal year 2025 broke through 50.68 trillion yen or around US$323 billion.
Kyodo News, quoted Friday, May 8, reported that Toyota became the first Japanese company to post annual sales of over 50 trillion yen. The 5.5 percent sales increase was supported by strong demand for hybrid cars and price adjustments.
However, the sales record did not make Toyota's profits go fast. The company's net profit fell 19.2 percent to 3.85 trillion yen. Operating profit also fell 21.5 percent to 3.77 trillion yen.
The main cause is the United States import tariff. Toyota said the impact of tariffs on operating profit reached 1.38 trillion yen. The figure is lower than the initial estimate of 1.45 trillion yen, but it remains a big burden for the company.
The tariff was imposed after US President Donald Trump in April last year raised Japanese car import duties to 27.5 percent from the previous 2.5 percent. After negotiations, the tariff was reduced to 15 percent in July and officially came into effect in September.
On the volume side, Toyota is still strong. Sales of Toyota group vehicles, including Daihatsu Motor Co. and Hino Motors Ltd., rose 2.5 percent to 11.28 million units. Demand in key markets, including Japan, is still solid.
Toyota's road this year has not been easy. For the fiscal year ending March, the company expects net profit to fall again by 22 percent to 3 trillion yen. Sales are only projected to rise slightly by 0.6 percent to 51 trillion yen.
Operating profit is also expected to fall 20.3 percent to 3 trillion yen. Toyota said US tariffs could cut operating profit by 1.38 trillion yen, while Middle East tensions are expected to weigh on it by 670 billion yen.
The Toyota group expects global sales this year to fall 0.9 percent to 11.18 million vehicles.
There is a change in the group's structure. Hino is no longer a consolidated subsidiary of Toyota after merging with Mitsubishi Fuso Truck and Bus Corp. in April.
Toyota's sales record comes at a time of huge profit pressures from US tariffs and Middle East tensions.
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