In the world automobile market, despite the rapid development of new energy vehicles in recent years, but traditional fuel vehicles still occupy most of the market share, among which Toyota can be described as a leader, just recently Toyota released a financial report, net profit increased significantly, but it has sharply lowered next year's expectations, Toyota's move is puzzling, what is going on?
1. Toyota's net profit in fiscal 2024 has increased significantly
According to Jiemian News, Toyota, which has been the world's largest automaker for four consecutive years, delivered a brilliant financial report, but the outlook for the new fiscal year is weak.
Toyota's 2024 fiscal year (April 1, 2023 to March 31, 2024) results show that Toyota's sales revenue and net profit in the fiscal year reached a record 45.1 trillion yen (about 2 trillion yuan) and 4.9 trillion yen (about 230 billion yuan), respectively, with a year-on-year growth rate of 21.4% and 101.7%.
According to data released by Toyota, Toyota's global sales in the last fiscal year (including those of Daihatsu and Hino Motors) increased by 5% year-on-year to 11.1 million units, exceeding the 10 million mark for the first time and achieving growth for the third consecutive year.
In addition to the boom in production and sales, the depreciation of the yen is also a core factor in Toyota's outstanding performance.
The Bank of Japan has responded by cutting interest rates by a continuous rate cut, and the yen has depreciated sharply against the dollar, the euro, and the yuan, and the yen has depreciated by nearly 20% against the dollar this fiscal year.
More unexpectedly, Toyota has significantly lowered its revenue forecast for fiscal 2025. Toyota Motor expects sales revenue of 46 trillion yen in fiscal 2025, up 2% year-on-year; Operating profit was 4.3 trillion yen, down 19.7% year-on-year; Net profit is expected to be 3.57 trillion yen, down 27.8% year-on-year.
Second, what should Toyota look at when it has significantly lowered its expectations?
In a complex global economic environment, Toyota's financial performance, as a giant in the global automotive industry, has always attracted much attention. Recently, Toyota released its financial report for fiscal year 2024, showing a significant increase in its net profit, but at the same time lowering its future earnings forecast. What is the logic behind this seemingly contradictory phenomenon?
First of all, the global currency market is turbulent, and the movement of the yen is particularly eye-catching. In the face of the Fed's continued interest rate hikes to curb inflation, the Bank of Japan has taken a very different monetary policy path, choosing to continue to cut interest rates to stimulate the domestic economy, which has led to a significant depreciation of the yen against major currencies such as the US dollar, the euro, and the yuan, with the yen falling by nearly 20% against the US dollar. For an export-oriented company like Toyota, the depreciation of the yen is undoubtedly good news. It has strengthened the price competitiveness of Japanese products in the international market, which has led to a significant increase in Toyota's export earnings in yen, which has directly contributed to the increase in its operating income.
Second, as the global economy continues to recover, market demand has experienced a process from a trough to a rapid recovery, especially in the auto market, where pent-up consumer demand has been released, driving the overall sales increase. As the world's leading automaker, Toyota quickly seized the opportunity of market recovery with its strong brand influence, extensive product line and flexible supply chain management, and achieved a good momentum of both production and sales. In particular, its hybrid models have been warmly welcomed by consumers around the world and have become an important force driving Toyota's sales growth. These models not only meet the growing demand for eco-friendly mobility, but also find a good balance between performance and economy, in line with the global automotive market's trend of low-carbon transformation.
Third, in the context of the acceleration of the global automotive industry's transition to new energy, Toyota's hybrid models conform to the development trend of the market and become an important driving force for its sales growth. These models have been recognized by consumers for their advantages in energy saving and emission reduction, and are more competitive than pure electric vehicles in terms of range and maintenance costs. Toyota's leadership in hybrid technology has earned it valuable market share, further cementing its position as a mainstay in the automotive market.
Fourth, however, despite Toyota's impressive results in fiscal 2024, it has opted to lower its earnings forecast for the future. Why is that?
On the one hand, the rapid growth of labor costs is one of the main reasons for Toyota's downward revision. With the tightness of the global labor market and the general rise in wage levels, Toyota's labor costs are also increasing. Especially in key links such as R&D and production, the demand for high-quality talents and salary levels are rising, which puts forward higher requirements for Toyota's cost control capabilities.
On the other hand, the intensification of market competition has also brought a lot of pressure to Toyota. While Toyota has a certain lead in areas such as hybrid vehicles, other competitors are also increasing investment and innovation in an attempt to seize more market share. Under such circumstances, Toyota needs to remain vigilant and continuously improve its core competitiveness and market adaptability. #记录我的2024#