Tokyo, Nov. 5 (Jiji Press)–Toyota Motor Corp. on Thursday posted its first rise in consolidated net profit for the April-September period in three years, with profit increasing 26.1 pct from a year earlier to 2,236.4 billion yen. Robust sales of new vehicles, particularly hybrids, in Japan, along with a weaker yen, lower U.S. tariff burdens and aggressive cost-cutting efforts, boosted earnings. The Japanese auto giant also outlined progress in its business restructuring efforts, announcing plans to make robotics, including factory automation, a core business in the future. Toyota’s group operating profit for the first half of fiscal 2026 climbed 9.2 pct to 2,191.1 billion yen, as cost cuts and other efforts offset a 465-billion-yen drag on profits from higher raw material costs, including those stemming from the worsening situation in the Middle East. Sales rose 9.5 pct to 26,962.4 billion yen, marking the sixth consecutive increase for the April-September period. Takanori Azuma, chief officer of Toyota’s Accounting Group, said in an online press conference, “We were able to limit the impact of changes in the external environment, including developments in the Middle East, through swift responses.” By region, North America returned to profitability thanks to lower tariff burdens and vehicle price revisions. Earnings were also supported by growing revenue from repair and maintenance services. As part of its restructuring efforts, Toyota will establish a new division in January 2027 to consolidate personnel and functions related to robotics. The company plans to introduce robots first at its own plants before commercializing the technology. Toyota Executive Vice President Yoichi Miyazaki told the press conference, “The initiative represents the digitalization and automation of the Toyota Production System,” the company’s manufacturing philosophy focused on eliminating waste. Miyazaki also stressed that Toyota aims to maintain annual vehicle sales of around 10 million units centered on hybrid vehicles while adding further growth through electric vehicle sales. In China, where Toyota has been struggling, the company plans to strengthen competitiveness by expanding procurement from local suppliers. Miyazaki said Toyota intends to “accelerate growth again” in the market. Global vehicle sales by the Toyota group, including those at subsidiary Daihatsu Motor Co., fell 4.6 pct to 5,381,000 units. The decline was partly due to Hino Motors Ltd. being excluded from the group’s consolidated results. Sales rose after excluding Hino from the previous year’s figure. For the full fiscal year ending March 2027, Toyota revised up its consolidated net profit forecast to 3.57 trillion yen from 3.25 trillion yen and its operating profit projection to 3.9 trillion yen from 3.4 trillion yen. Meanwhile, it lowered its sales forecast to 53.5 trillion yen from 54 trillion yen. END [Copyright The Jiji Press, Ltd.]
