[Auto] Toyota breaks its profit record and announces what it will spend it on

[Noticias ALEJANDRO]

The idea is… stop. Stop growth to ensure “our long-term future growth.” You will make investments in suppliers, dealers, employees and next-generation technologies. 42% of the profits will go to this last section, where electrification, software and artificial intelligence are found, up to $11.24 billion, in the current fiscal year. It will allocate $2.51 billion to improve human capital and support suppliers or distributors. The outlays are so large that they will affect profits this fiscal year.

 

 

If one brand knew how to handle the global shortage of semiconductors, it was Toyota. While other brands were struggling and shutting down production plants, Toyota accelerated its global manufacturing machinery to record production. Thus, the Japanese giant produced a record 11.21 million vehicles in the fiscal year that ended March 31, including Daihatsu and Hino trucks. The third consecutive year with increases. These good sales were helped by favorable exchange rates (since they denominate profits in yen and that added up to 305 billion yen ($2.02 billion).

 

 

 

Car sales are scared with this technology in the Toyota Group. In the fiscal year that just ended, they sold more than 3.7 million hybrids, 32% more than the previous year, reaching a third of the total sales volume. Of course, their electrics don't take off. They sold just 116,654 electric cars in the fiscal year that ended March 31. More than triple the amount it sold the previous year (they were zero in 2020.

Chief Financial Officer Yoichi Miyazaki indicated that customers opt for hybrid cars because they are ecological and efficient, and "because technological improvements also make them fun to drive." In some cases, prices have fallen along with those of internal combustion. And hybrids don't generate the range anxiety that pure battery electrics do.

Toyota hybrid cars are even more profitable than gasoline ones. Therefore, the more they sell, the more profits they make. In fact, they expect their sales to increase by 25%, to 4.65 million this year, 42% of the total volume of global registrations. The electric ones increase their forecasts by 46%, up to 171,000 units... they will continue to be residual in the total until 2025.

 

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