Toyota's profit expected to increase but automaker's production likely to be hit. Here's why

Toyota Motor Corp’s quarterly results will be published on November 1. Despite the falling Japanese yen and production rebound, the profits of the automaker are expected to rise by a smaller percentage due to higher costs.

Earlier, the automaker stated that its production grew 30 per cent in the September quarter. However, given the shortage of semiconductors and other parts, production is expected to be impacted in the coming months. The company also stated that it would not be able to meet its annual target of manufacturing 9.7 million vehicles due to supply chain constraints and a shortage of chips.

It is estimated that Toyota might report a 3 per cent jump in its operating profit for the July-September quarter, and the profit will stand at USD 5.3 billion. This will be the first instance of increasing profits over the last three quarters following the 42 per cent loss in the June quarter.




The falling Yen (against USD) has resulted in better sales of Toyota internationally.

The shares of Toyota are also trading at a loss of 2 per cent, compared to an average loss of 4 per cent on the Nikkei index. The company recalled its mass-produced EVs within two months due to safety concerns and started accepting leasing orders in October 2022.

FAQs:

1. Who are Toyota’s competitors?
   Toyota’s biggest Japanese competitors are Nissan and Honda Motors.
2. What is the current trading value of the Japanese Yen?
   Currently, the Yen is trading at around 146 to the US dollar.
3. What is Toyota’s market USP?
   Toyota is the world’s biggest automaker considering its sales.