Toyota Motor recently released its financial results for fiscal year 2024 (April 2023 - March 2024), with good news and bad news.
Let's start with the good news, in the past 2023, Toyota's sales in China in 2023 will be 1.701 million units, and Toyota's sales in the Chinese market will decline by 1.7% year-on-year. However, on the Internet, the degree of decline for Toyota is far greater than its decline, as if Toyota's two joint ventures in China are about to go bankrupt.
In addition to the decline in sales, Toyota in the new energy transformation, the pace is relatively slow, this is indeed a fact, at present Toyota in China launched only two pure electric models, sales are relatively average, it seems that Toyota has not made up its mind, to completely transform into the field of new energy.
From the perspective of business conditions, the revenue of Toyota's consolidated subsidiaries in China was 195.6 billion yen, a year-on-year increase of 1.1 billion yen, and the conversion into RMB was 9.08 billion yuan. In other words, Toyota's net profit in the Chinese market is less than 4% of Toyota's global profit in fiscal 2023. Sales accounted for 16%, but net profit accounted for only 4%
On the bad news, according to Toyota's data for fiscal year 2024, its sales revenue will be 45.095 trillion yen, a year-on-year increase of 21.4%; Operating profit was 5.353 trillion yen, a year-on-year increase of 96.4%; Net profit was 4.945 trillion yen, up 101.7% year-on-year. Its net profit in fiscal 2024 reached an eye-popping 230 billion yuan, and Toyota's sales margin was 11.9% in 2024, compared to 7.3% in the previous fiscal year.
At present, 12 of the 18 listed car companies that can be counted, including traditional car companies and new forces, will be profitable in 2023, and 6 will still be loss-making, with a total profit of less than 50 billion yuan. If you look at the 12 profitable car companies, the total profit is 96.3 billion yuan, less than 100 billion. Among them, BYD sold more than 3 million vehicles last year, with a net profit of about 30.041 billion yuan.
In other words, Toyota's net profit in fiscal year 2024 is 2.5 times that of the 12 listed Chinese automakers combined.
Sitting on the world's first market, and the proportion of independent brand sales has reached 60%, why independent brands can't make money, mainly because of two reasons, the first price war, is indeed squeezed out of the joint venture car, snatched away part of the market share, but the independent brand is also a big injury, the real can achieve both volume and price rise only BYD and ideal, other car companies are basically losing money to make money, especially some new forces in car manufacturing.
The second reason is that domestic car companies ALL IN new energy have indeed spent a lot of R&D funds, whether it is three-electric technology or intelligence, they need a lot of manpower, material and financial resources to invest in R&D, which leads to a higher market share of domestic car companies, but they do not make money.
Toyota is different, Toyota in the Chinese market, is also price for volume, basically does not make money, sales accounted for 16%, net profit accounted for only 4%, however, Toyota in the North American and European markets to make money, those markets new energy transformation is not as radical as the Chinese market, nor the Chinese market so involution, Toyota still achieved a higher profit margin.
The current trend is that the profitability of Chinese automakers is still further differentiated, and profits are concentrated in the top automakers. For example, BYD and Ideal, the head of their respective segments, while other car companies, in the cruel price war, are either eliminated or lose money to make money, this situation is actually not a healthy development situation, but domestic car companies have killed the red eye, the market has been involuted to such a point, there is no way back.
Although Toyota does not sell well in the Chinese market, it can still make money in the North American and European markets, and then invest in new energy research and development, in the final analysis, Toyota is not as miserable as it is on the Internet, in other words, Toyota can afford it, but some domestic car companies can't last long, the most afraid is that Toyota's solid-state battery is really broken through in 2027 as planned, then it is really going to pick peaches, and domestic car companies should be vigilant in this regard.