Toyota recently announced that its profit for the fiscal first quarter rose to a record 1.33 trillion yen, up 1.7% compared to the same period a year ago. This increase was primarily attributed to a favorable exchange rate and strong global vehicle sales, despite facing a certification scandal that led to the halting of production in Japan for several months. The weak yen played a significant role in this growth, with the currency fluctuations adding 370 billion yen in operating profit for the period.
The production halt in Japan was a result of irregularities found in documentation for certification approval, leading to Toyota apologizing for the misconduct and taking steps to resume production. Despite this setback, demand for Toyota's popular hybrid models remained strong, showcasing the company's commitment to delivering fuel-efficient vehicles that switch between an electric motor and gas engine. However, Toyota experienced a slight dip in vehicle sales during the latest quarter, selling 2.25 million vehicles compared to 2.3 million vehicles the previous year.
Looking ahead, Toyota expects to sell 9.5 million vehicles globally for the full fiscal year and estimates nearly 11 million vehicles in annual global sales when including group companies like Daihatsu Motor Co. and Hino Motors. The company maintained its profit forecast for the full fiscal year through March 2025 at 3.57 trillion yen, despite a projected 28% decrease from the previous fiscal year. In contrast, Japanese rival Nissan Motor Co. reported a 73% decline in quarterly profit, while Honda Motor Co. is set to report earnings in the upcoming week.