Toyota has raised its annual operating profit outlook even though its income in the three months to December fell short of estimates due to a downturn in global sales and production, indicating that it sees activity picking up at a faster pace later.
The world’s biggest carmaker now expects a profit of ¥4.7 trillion ($31 billion) for the fiscal year ending March, up from its previous forecast of ¥4.3 trillion, according to a statement Wednesday. Analysts are projecting, on average, ¥4.8 trillion as robust demand for gas-electric hybrids in the United States makes up for weaker sales in Japan and China.
Toyota sold 10.8 million cars in 2024, a slight drop from the 11.2 million it delivered in the previous year but enough to protect its position as the world’s top carmaker, ahead of Volkswagen, for a fifth straight year. Although Tesla, China’s BYD and others are taking the lead in selling battery-powered electric vehicles (EVs), Toyota has taken a different approach by maintaining its focus on churning out gasoline and hybrid vehicles.
