Tokyo
Reuters
–
Thursday, Toyota Motor planned a drop in profits of 21% for the current financial year, while the pressure of the prices of the US President Donald Trump and an appreciable yen undergo part of the high demand for hybrid vehicles.
The best -selling car manufacturer in the world expects operating income to total 3.8 yen billions ($ 26 billion) from the year until March 2026, against 4.8 yen billions during the financial year that has just ended. It was almost in accordance with the average of 4.75 Billions of Yen of 25 analysts interviewed by LSEG.
Toyota risks the risk of being struck by generalized benefits of Trump prices, not only of the impact on its exports linked to the United States, but also because of the potential for slowing down consumers in the United States and elsewhere. Price increases can lead to a decrease in consumers’ feeling.
The lower profit for the coming year is due to the negative impact of a stronger yen, as well as prices for higher materials and the impact of prices, Toyota said in a presentation.
Like other world car manufacturers doing business in the main global economy, Toyota could face high labor costs and be forced to spend more in investment, if it decides to extend its American production base.
While Toyota has seen its vehicle sales in China fall less than other Japanese car manufacturers, it still had trouble stopping a drop in sales of the largest automotive market in the world in the middle of the strong competition from Chinese brands.
