Toyota Posts Record Quarterly Profit on Strong Hybrid Sales and Favorable Exchange Rate

Japanese automaker Toyota reported a significant increase in profit for its fiscal first quarter, which ended in June. The company's net profit rose to 1.48 trillion yen ($9.4 billion), nearly doubling from the same period last year. Quarterly sales increased by 10% year-over-year to 13.5 trillion yen ($85 billion).

The favorable exchange rate of the yen against the US dollar, which was trading at around 160 yen per dollar during the quarter, contributed significantly to Toyota's profit. The company estimates that this currency effect added approximately 345 billion yen ($2.2 billion) to its quarterly operating profit.

Toyota's Chief Officer Takanori Azuma attributed the strong demand for the company's hybrid vehicles in various global markets, including the US and India. He also mentioned that Toyota plans to boost production of hybrid and battery components through 2030, aiming to reduce costs. The company is expecting a total of 9.7 million vehicle sales for the full fiscal year.

However, Toyota's profit projection for the full fiscal year has been revised downward from 3.85 trillion yen ($24 billion) to 3.25 trillion yen ($20.6 billion). Despite this revision, annual sales are forecast at 54 trillion yen ($342 billion), surpassing last year's figure of 50.7 trillion yen.