MILAN, Aug. 3 (Class Editori) — Toyota has released a quarterly report that exceeded expectations as it prepares to compete against though rivals in the world's largest car market, namely China, where companies such as Tesla and local manufacturers like Build Your Dreams (BYD) are gaining a larger share, especially in the electric vehicle market.
In the first quarter of fiscal year 2023/2024 (April-June), Toyota, the largest global car manufacturer and second-largest by capitalization after Tesla, almost doubled its profits. The company's net income increased by 78% to nearly 8.4 billion dollars, driven by a combination of factors such as enhanced production capacity and sales growth, increased productivity, and a weaker yen. The Japanese Group reported an operating profit of approximately 7.7 billion dollars for the quarter ended June, showing a 94% increase from the same period last year. Meanwhile, sales rose by 24.2% to 73.8 billion dollars.
Despite these figures, Toyota maintained its unchanged annual targets. The profits earned in the quarter ending June marked the first earnings after Toyota announced a plan to sustain its global leadership position as a car manufacturer, even as the industry is shifting towards electric and hydrogen-powered vehicles. The company aims to maintain its competitiveness without risking the failure to adapt to the fast transition towards electric vehicles, especially in China, where the company faces increased competition from local players and price cuts introduced by Tesla and other competitors, which are putting pressure on the company’s market share.
However, Akio Toyoda, the Manager who hindered the electrification of the Japanese car manufacturer for years, is no longer at the helm of Toyota. Since January, the position has been held by Koji Sato. Under his leadership, the company has revised its strategy on hydrogen and battery-powered vehicles, including the announcement of a new platform that should enable Toyota to produce about ten electric models by 2026.
(Source:Class Editori)
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