Japanese automaker Toyota Motor Corp. recorded a paradoxical situation in the past fiscal year, which ended in late March. Its revenue rose to a record 50.68 trillion yen, representing an increase of 5.5 percent. However, the automaker's net profit fell significantly by 19.2 percent to 3,850 billion yen, or approximately 24.54 billion dollars. Trend ↗ hnonline.sk ↗
Behind the decline in profits are several negative factors that affected the results of the world's largest automobile manufacturer. A significant problem is the tariffs imposed by the US administration on car imports, which increase the costs of exporting to the American market. Geopolitical tensions in the Middle East and the armed conflict in the region represent an additional burden. Toyota itself stated that the conflict in the Middle East should negatively affect its financial results in the current fiscal year by approximately 670 billion yen. teraz.sk ↗ Der Standard ↗
The combination of these factors – US-China trade tensions, difficulties with American tariffs, and destabilization in the Middle East – significantly dampened China and other key markets for Japanese manufacturers. Despite Toyota achieving historically the highest revenue, it is clear that geopolitical and trade turbulence are significantly reducing the profitability of its business. The company is therefore grappling with the challenge of converting high revenue into corresponding profit in an environment of deteriorating external conditions. ANSA ↗
Toyota reports one-fifth drop in profit despite record revenue
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