Photo: auto.economictimes.indiatimes.com
Toyota Faces Profit Decline Amid US Tariffs Despite Strong Hybrid Sales
Toyota is poised to report a significant profit decline due to US tariffs, despite strong sales of hybrid vehicles, casting uncertainty on its financial outlook in Japan.
- Toyota is expected to report a 25 percent year-on-year decline in operating profit, projecting 863.1 billion yen ($5.72 billion) for the quarter ending September 2023.
- The decline in profit marks Toyotas second consecutive quarterly drop, attributed to increasing US tariffs and ongoing supply-chain risks impacting operations in Japan.
- Despite these challenges, Toyota continues to experience strong global sales of hybrid vehicles, which have become a crucial part of its strategy amid shifting market demands.
Por Qué Es Relevante
This profit decline highlights the vulnerability of major automakers like Toyota to external economic pressures, particularly from tariffs, and raises concerns about the sustainability of its growth strategy in a competitive market.