Despite posting a record সম্প্রতি 24.61 billion profit for the year as of March 31st, Toyota is lowering its expectations for the coming fiscal year.
Speaking at the company’s quarterly earnings press conference, the carmaker revealed that the cost of raw materials could be more than double that of last year. It is concerned with inflationary pressures and rising gasoline prices, and as such, it is difficult to predict in the short term.
“These factors will only get worse,” said Jun Nagata, Toyota’s chief communications officer. “This fiscal year is going to be more difficult to predict than any other year.”
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Toyota added that rising raw material prices would hit its profits particularly hard, with chief technology officer Masahiko Maeda noting that electric vehicles would take a big hit. Maeda acknowledged that the carmaker would be “conservative” in carrying higher costs to consumers with increased prices, noting that only select markets would accept price increases.
The carmaker expects to supply 3.07 million electrified vehicles by March 2023. Of these, about 2.85 million hybrids will be Prius and RAV4 hybrids and BEVs are responsible for 95,000 sales.
Toyota’s recent profits have been boosted by favorable foreign exchange rates and lower marketing costs, which have helped it offset increased costs for raw materials and supplies. However, Chief Financial Officer Kenta Con says the next 12 months will be even tougher, noting that operating profit and net income will lag behind. Conn added that Toyota would try to protect suppliers from rising raw material prices by absorbing additional costs. Auto News Comments.
For the fiscal year to March 31, Toyota has increased production by 6.2 percent to 10.06 million vehicles and increased production to recover lost output in the previous two years. On the front, the brand will slow down production and take a “deliberate break” from April to June.