Toyota's Latest Financial Report: Revenue Declined and Plans to Increase Electric Vehicle Sales

【PCauto】Recently, Toyota released its latest financial report (covering the fiscal year from April 1, 2024, to March 31, 2025). It's worth noting that Toyota's operational capabilities are commendable. The report indicates a decline in revenue over the past year, yet the company's revenue and profit remain the largest in the industry.

In response to market changes, Toyota has adopted a very prudent strategy, presenting a stark contrast to Chinese automakers who would rather push for market expansion even though it causes loss.

Operating Profit Decline, But Profitability and Cash Reserves Remain Strong

The financial report revealed that Toyota's operating revenue reached 48.04 trillion yen, a year-on-year increase of 6.5%. However, profits dropped by 10.4% to 4.8 trillion yen, a decrease of 557.3 billion yen compared to the previous fiscal year.

In terms of sales volume, Toyota sold a total of 10.274 million vehicles globally, a slight decrease of 0.3% from the previous year’s figure of 10.309 million vehicles. Sales data indicate declines in Japan (1.993 million vehicles), North America (2.816 million vehicles), Europe (2.703 million vehicles), and Asia (1.192 million vehicles), while the Middle East and South America showed slight increases.

Notably, however, Toyota's electric vehicle sales experienced significant growth. Sales of HEVs, PHEVs, BEVs, and FCEVs reached 4.748 million units, accounting for 46.2% of total sales, with BEVs showing the largest increase at 23.9%. This indicates that Toyota's efforts in the pure electric vehicle sector are beginning to bear fruit.

Future Profit Expectations Lowered to 3.8 Trillion Yen, More Funds Allocated for R&D

For the next fiscal year, Toyota forecasts operating profit to be 3.8 trillion yen, with an operating margin of 7.8% and operating revenue of 48.5 trillion yen.

While operating revenue is growing, profit is on the decline. Toyota attributes this to rising raw material costs, tariff impacts. More importantly, the company's transition towards becoming a mobility solutions provider, necessitates increased investments to nurture new business and build a stable revenue structure.

To this end, in addition to traditional vehicle sales, Toyota is expanding its ventures in finance, used cars, and parts supplies to enhance its overall competitiveness. For instance, the financial business posted operating profit (excluding swaps and other evaluative gains) of 673.7 billion yen in March 2025, becoming an important growth driver. Furthermore, Toyota is ramping up investments in SDV technologies and the Woven City project, exploring new mobility models for the future.

Since Toyota's efforts in the pure electric vehicle sector are yielding results, its projections for the next fiscal year estimate electric vehicle sales to increase to 5.184 million units, elevating its share to 49.8%, including a projected 213.8% growth in BEVs (Battery Electric Vehicles).

Toyota Remains a Giant in the Automotive Industry

Overall, while Toyota's latest financial report indicates a downward trend in revenue and profit, it still remains highly competitive in the automotive sector.

From the perspective of profit, compared to BYD's annual profit of 40.254 billion yuan, Toyota's operating profit is 5.8 times that of BYD. Moreover, Toyota's profit is 1.98 times the total profit of 12 profitable Chinese automakers, which collectively reported a profit of 122.677 billion yuan last year.

Toyota's strength not only far exceeds that of Chinese automakers but also German vehicle manufacturers.  Its cash reserves of 8.98 trillion yen are equivalent to 1.8 times the combined cash reserves of Germany’s Volkswagen, BMW, and Daimler. Additionally, Toyota's profit margin of 10% significantly surpasses Volkswagen's 5.9% and Tesla's 7.2%.

Objectively, the insights provided in this financial report reflect Toyota’s deep-rooted foundation in the traditional automotive sector while showcasing its proactive exploration and efforts in the transition toward electrification and intelligent mobility.