The COVID-19 pandemic and global semiconductor shortage that have crippled some carmakers proved to be no obstacle for Toyota, which announced record profits for the year to March 31.
Toyota’s annual profit climbed 36 percent to a staggering 3 trillion yen ($24.61 billion), and revenue swelled 15 percent to 31.38 trillion yen ($257.42 billion), the profit figure becoming the company’s best yet, surpassing the previous record of 2.3 trillion set in 2016. Global sales also increased in the same period, climbing 7.6 percent to 8.23 million vehicles, that number including sales of Toyota’s subsidiaries, including Lexus.
But just as 2016’s record year was followed by a significant downturn, Toyota is not confident it can top 2021’s numbers in this fiscal year, which ends on March 31, 2023. While it expects global retail sales to increase by 3.1 percent to 10.7 million units, operating profit is predicted to fall back to 2.40 trillion yen ($19.69 billion).
That gloomy outlook results from a perfect storm of concern over rising raw material costs, worries about inflation, and further potential supply and production problems caused by ongoing semiconductor shortages, pandemic lockdowns in China, and the conflict in Ukraine.
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“These factors will be compounded,” Chief Communications Officer Jun Nagata said. “This fiscal year, it’s going to be even more difficult than other years to make a forecast.”
Toyota will pick and choose where it increases retail prices to offset increased costs and shore up profits, Automotive News reports. While Toyota execs believe the company’s strength is its ability to offer vehicles at almost every price point, it is concerned that customers in some regions won’t stand for price increases.
H/T to Automotive News