Toyota Reports Operating Profit of 1.1209 Trillion Yen in Q2... First Japanese Company to Surpass 1 Trillion Yen

Operating Profit Hits 1.1209 Trillion Yen
First Japanese Company to Surpass 1 Trillion Yen
Strong Performance Driven by Yen Depreciation and Sales Recovery
Decline in Chinese Market Sales Remains a Challenge

Toyota Motor Corporation of Japan recorded a historic high operating profit exceeding 1 trillion yen for the first time in the second quarter of fiscal year 2023 (April 2023 to June 2023), driven by the weak yen effect and increased vehicle production. Toyota is the only Japanese listed company to have surpassed 1 trillion yen in operating profit on a quarterly basis.

[Image source=Yonhap News]

Toyota announced on the 1st that its sales for the second quarter of fiscal year 2023 reached 10.5468 trillion yen (approximately 94.6 trillion KRW), a 24% increase compared to the same period last year. Operating profit rose 94% during the same period to 1.1209 trillion yen (approximately 10.0591 trillion KRW), surpassing the previous record set in the first quarter of 2021 (997.4 billion yen). Net profit also saw a significant increase. In the first quarter, Toyota's net profit rose 78% year-on-year to 1.3113 trillion yen (approximately 11.7982 trillion KRW), marking the first time a Japanese company exceeded 1 trillion yen in both operating profit and net profit on a quarterly basis.

The Asahi Shimbun explained, "Strong sales performance in Japan and Europe combined with the weak yen significantly boosted results."

The recovery of vehicle production, which had been reduced due to a shortage of automotive semiconductors, also had a major impact on sales growth. Production of Toyota and Lexus brand vehicles increased 20% year-on-year to 2.45 million units, marking the highest quarterly production volume. For the first half of the year (January to June), the Toyota Motor Group as a whole (including Hino Motors and Daihatsu Motor) recorded global vehicle sales of 5.419 million units, a 5.5% increase from the previous year, maintaining its position as the world's number one for the fourth consecutive year.

However, the decline in sales performance in the Chinese market has emerged as a challenge to overcome. Sales in China last month fell by 12.8% compared to the same month last year. With the Chinese government tightening pollutant emission regulations starting in July, Toyota, which has maintained a sales strategy focused on internal combustion engine vehicles, is inevitably facing a sales hit. In response, Toyota took measures last month to reduce its workforce by 1,000 employees at its Chinese operations, citing sluggish new car sales.

The Asahi Shimbun stated, "The disappearance of sales incentives in the Chinese market has created uncertainty about future performance," and added, "The transition to electric vehicles is rapidly progressing in China, raising concerns that other companies may take market share."

This content was produced with the assistance of AI translation services.