Between April and June, Toyota reported a 74% year-on-year drop in net profit to JPY158.8 billion (US$1.5 billion). Despite the results, Toyota remains one of the few automotive manufacturers to register a quarterly profit amid the Covid-19 pandemic, thanks to a recovery in China and a stringent cost-cutting strategy in the past few years. Shares of the world’s second-largest car manufacturer rose to almost 3% in Tokyo upon the announcement of results.

In its outlook, the manufacturer of the RAV4 SUV crossover and the Prius hybrid expects global sales to reach 7.2 million cars in 2020, down from the 10.46 million in 2019, but up from the 7 million since its May forecast, led by China. Toyota expects North America, its biggest market, accounting for nearly 25% of global sales, to be the most impacted region, where it forecasts an annual sales drop of 14%. During the first quarter, sales in North America declined 62%, resulting in a 50% drop in consolidated global sales to 1.16 million units. In the same quarter, sales in China rose 14% to 482,000 vehicles. 

Toyota said it maintains its full-year guidance for operating profits and revenue, but warned of “the possibility that the business environment will change significantly depending on the future spread of Covid-19 and the state of its containment”.

Sources: Reuters/Financial Times