Toyota Motor Corporation announced on the 1st that its operating profit for the second quarter (April to June) of this year surpassed 1 trillion yen. It is the first time that not only Japanese automakers but also major Japanese companies such as Sony and Softbank have achieved operating profit of 1 trillion yen in a quarter. The operating profit for the second quarter was 1.1209 trillion yen, up 94% year-on-year, which was a “surprise performance” that greatly exceeded market expectations. The company’s stock price also rose to 2,502 yen on the 2nd, recording the highest price after the stock split in 2021. ..
read more
Toyota Motor Corporation announced on the 1st that its operating profit for the second quarter (April to June) of this year surpassed 1 trillion yen. It is the first time that not only Japanese automakers but also major Japanese companies such as Sony and Softbank have achieved operating profit of 1 trillion yen in a quarter. The operating profit for the second quarter was 1.1209 trillion yen, up 94% year-on-year, which was a “surprise performance” that greatly exceeded market expectations. The company’s stock price also rose to 2,502 yen on the 2nd, recording the highest price after the stock split in 2021. It’s actually a record high. In addition, the number of units sold in the first half of the year reached approximately 5.41 million units, ranking first in the industry for the fourth consecutive year. Both in terms of scale and content, it can be said that this is the best result ever.
In the last few years, Toyota has been called an ‘EV inferior student’ because it has emphasized hydrogen and hybrid vehicles amidst the global shift to electric vehicles (EVs). Even in such a situation, it shows the underlying strength of the world’s top company.
The biggest secret is the growth of hybrid cars with “original” technology amid the eco-car boom. Toyota sold about 1.6 million hybrid vehicles worldwide in the first half of this year. It reaches about 30% of the total sales volume. Sales increased by 21% from the first half of last year, reaching a growth rate of 69% compared to the first half of 2019 before COVID-19.
Toyota has been pointed out that it is sticking to hybrid vehicles and hydrogen vehicles while the shift to EVs is actively progressing worldwide. Toyota sold about 24,500 EVs last year, far behind rivals such as Tesla (about 1.31 million), Volkswagen (about 570,000) and Hyundai Motor Group (about 370,000).
But recently, as governments cut subsidies for EVs, consumers were hesitant to buy EVs, which are still more expensive than internal combustion engines and less convenient to charge. On the other hand, interest in hybrid vehicles, which are cheaper than EVs and less inconvenient to charge, has increased. Toyota aggressively captured such needs in North America and Europe.
A record weak yen, falling to 140 yen to 1 US dollar and 900 won to 100 yen to 900 won, and the strong Japanese economy also contributed to the performance. In the first half of this year, Toyota sold about 1.21 million units in Japan, up 27% from the same period last year. Toyota also has a high percentage of exports, and the effect of the weaker yen has increased its operating profit by about 45 billion yen.
However, some point out that this kind of good performance will not last long. Ultimately, the competitiveness of the future will depend on the power of EVs, but Toyota is still a latecomer. Related to that, China, one of Toyota’s three largest markets, is also a cause for concern. China is the world’s largest car market and the fastest to convert to EVs. “Toyota has recently been aggressively launching and selling EVs, and the future of Toyota will depend on how quickly it can improve its competitiveness in the EV field,” said a South Korean auto industry insider.
Reporter Jeong Han-guk
Chosun Ilbo / Chosun Ilbo Japanese version
Copyright (c) Chosunonline.com
2023-08-04 21:01:00
#Toyotas #counterattack #postponing #entry
