Japanese automotive giant Toyota announced on Friday that it has increased its profit and sales forecasts for the current fiscal year, even as it navigates the negative effects of US tariffs.
In a statement, the company said: “Despite the negative impact of US tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts.”
For the fiscal year ending March 2026, Toyota expects:
- Net profit: 3.57 trillion yen ($22.8 billion), up from 2.93 trillion yen
- Operating profit: 3.8 trillion yen, up from 3.4 trillion yen
- Sales: 50 trillion yen, compared with 49 trillion yen
However, the company noted that in the September–December quarter, net and operating profits fell despite higher sales, largely due to the tariff-related increase in expenses.
Toyota also highlighted that global sales hit a new record in 2025, maintaining its position as the world’s top automaker and widening the lead over German rival Volkswagen, despite flat sales in China—a key market where it faces growing competition from local automakers, including electric-car leader BYD.
In the United States, sales rose eight percent even with the 25 percent tariff on Japanese auto exports imposed between April and mid-September, after which a 15 percent cap took effect.
The company’s performance reflects its resilience in balancing rising costs with strategic cost-cutting and marketing initiatives amid ongoing trade tensions.
