Toyota's Quarterly Profit Nearly Doubles on Weak Yen and Strong US Demand

TOKYO — Toyota said Tuesday that its profit nearly doubled in the fiscal first quarter, as solid demand in the United States and India combined with a favorable exchange rate to lift results.

The automaker, maker of the Prius hybrid and Lexus luxury models, recorded a net profit of 1.48 trillion yen ($9.4 billion) for the April-June period, up from 841 billion yen in the same quarter a year earlier. Quarterly sales rose 10% from a year ago to 13.5 trillion yen ($85 billion).

A cheap yen raises the value of overseas earnings for large Japanese exporters such as Toyota Motor Corp. The dollar traded at about 145 yen during the fiscal first quarter of 2025, but at about 160 yen for the same period this year. The currency effect added 345 billion yen ($2.2 billion) to quarterly operating profit.

The dollar is now trading at about 158 yen following a joint U.S.-Japan market intervention last week, which falls in the fiscal second quarter. Toyota is assuming an exchange rate of 160 yen to the dollar for the full fiscal year.

Chief Officer Takanori Azuma said Toyota sold 2.39 million vehicles globally in the quarter, down from 2.41 million a year earlier. For the full fiscal year, however, the company expects sales of 9.7 million vehicles, up from 9.595 million the previous year.

Azuma said demand remains strong for Toyota hybrids in several markets, including the U.S., where the Camry mid-size sedan and RAV4 compact SUV are selling briskly. Toyota plans to expand hybrid and hybrid battery production through 2030 while bringing down costs, he said, adding that electric vehicle sales are also going strong. Popular models in India included the Urban Cruiser and Innova Hycross, while the Yaris remained a strong seller in Thailand and Europe.

Toyota flagged two risks. Political instability in the Middle East has weighed on Japanese automakers that rely heavily on the now effectively closed Strait of Hormuz for shipping; the company said it was working on the problem, including finding alternative routes. A magnitude 7.1 earthquake that struck Kumamoto in southwestern Japan on July 28 halted production at facilities in the Kyushu region, which are preparing to resume later this week. The Tahara plant in Aichi Prefecture also halted production, partly because of the quake, and output there will be down through the end of the month because of an unrelated summer break.

For the full fiscal year through March 2027, Toyota projects a profit of 3.25 trillion yen ($20.6 billion), below the 3.85 trillion yen ($24 billion) earned the previous year. Annual sales are forecast at 54 trillion yen ($342 billion), up from 50.7 trillion yen.

Toyota shares fell nearly 2% in Tokyo trading after the results were announced.