Toyota Motor Corp. of Japan reported a decline in operating profit during the quarter ending in September, with results falling short of market expectations, as the impact of US tariffs on its business continued.
According to LSEG data, Toyota's revenue in the quarter was 12.38 trillion yen (about $81 billion) compared to the expected 12.18 trillion yen, while operating profit was 834 billion yen compared to the expected 863.1 billion yen.
The company, the world's largest automaker by sales volume, indicated that its profits fell by about 28% year-on-year, despite revenues rising by more than 8%.
Toyota raised its operating profit forecast for its fiscal year ending next March to 3.4 trillion yen from 3.2 trillion yen in the previous estimate, stressing that it will continue to focus on increasing sales volume, reducing costs, and expanding profitability across the value chain.
The company said in its results statement: “Despite the impact of US tariffs, strong demand supported by the competitiveness of our products contributed to increased sales, especially in Japan and North America, leading to an expansion of profits across the value chain.”
Toyota reported that its profits declined for the second consecutive quarter since the United States imposed reciprocal tariffs last April. Tokyo reached a trade agreement with Washington in July that reduced tariffs on Japanese car exports to 15%, down from the 25% initially proposed by President Donald Trump. The new tariffs took effect on August 7.
Japanese car exports to the United States also declined in value by 24.2% in September, compared to a 28.4% drop in August.
Despite this, Toyota continued to record strong global demand, with total sales – including its luxury Lexus brand – reaching approximately 5.3 million vehicles during the nine months ending in September, a 4.7% year-on-year increase.
