Toyota Motor Corporation this week announced a 3.6% drop in net income to JPY 4,765 billion in the last financial year (FY2024), which ended on 31 March 2025, despite a 6.5% increase in revenues to JPY 48,037 billion. The company’s operating income fell by 10.4% to JPY 4,795.5 billion in this period, while its operating margin slipped from 11.9% to 10.0%.

Japan’s leading automaker confirmed that it was able to maintain its operating margin at around 10% thanks to “price revisions and the expansion of value chain profits, while advancing comprehensive investments that lead to the future and reinforcing our operating foundation.”

For the current fiscal year, ending on 31 March 2026, Toyota said it is forecasting a 20% drop in operating income to JPY 3.8 trillion, reflecting mainly the effects of the 25% tariff on US vehicle imports introduced by the US government earlier this year. Further tariffs were introduced by the US government last week on automotive parts, including engines.

The company’s operating margin in the current fiscal year is expected to drop to 6.4%, while net profits are forecast to fall by 35% to JPY 3.1 trillion.

Toyota expects global sales of Toyota and Lexus branded vehicles to increase by 4.7% to 9.8 million units in the current fiscal year, led by a 9% increase in North America to 2.94 million units and a 4% increase in Japan to 2.07 million units. Sales in Europe are expected to increase by 4.1% to 1.22 million units, while in Asia outside Japan the company expects to increase sales by 3.4% to 1.9 million units.