Toyota reported a stark decline in first-quarter profits, with net income plummeting 36.9% to 841.3 billion yen ($5.6 billion) despite a 7.1% surge in global vehicle sales to 2.41 million units. The Japanese automaker attributed the profit slump to escalating U.S. import tariffs, which cost it 2.6 billion euros ($2.8 billion) in Q1 alone, pushing its North American operations into the red. While revenue rose 3.5% to 12.25 trillion yen, operating profit fell 11% to 1.17 trillion yen—still surpassing analyst expectations of 881.4 billion yen, reflecting market pessimism.
Revised Forecasts Signal Cautious Optimism
Toyota slashed its full-year net profit forecast by 15% to 18.7 billion euros ($20 billion) due to projected $8 billion in annual tariff impacts. However, the company maintained ambitious sales targets, aiming for 9.8 million vehicles globally—including nearly 3 million in tariff-hit North America—and 11.2 million including joint ventures. Shares dipped 1.5% to 2,680 yen as investors weighed resilient demand against margin pressures from trade policies beyond Toyota’s control.
