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Toyota Motor (7203.T) today posted strong Q3 Japanese FY 2024 operating results (ending 31 Dec 2023) with net income of ¥4.24 trillion (+¥2.14 trillion YoY or ~+75% year-over-year) , Toyota also its full-year forecast for the year ending in 31 March to an operating income of ¥4.90 trillion, a ~9% increase. The results were bolstered by strong sales in North America, its largest market by volume. Sales volume increased in all regions to a total of ~7.3 million vehicles, especially for HEVs (+37.9% YoY at ~2.65 million).
“The increase in profits for fiscal year 2024 has been mainly due to the new car business, and our ‘transformation into a mobility company’ initiative is still a work in progress. We aim to further strengthen our value chain by leveraging our strength (asset) of having 100 million cars owned by our customers,” Toyota said.
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Supporting the positive results were mix improvements that raised prices, trimmed marketing incentives, as well as significant cost reduction efforts overcame soaring materials prices since the COVID-19 pandemic. A weaker Yen also helped sales. (AutoInformed: Group Troubles Move Forward Akio Toyoda’s Vision Speech; Toyota Posts FY2024 Q2 Net Income of $18.4 Billion; Toyota Posts Strong FY 2024 Q1 Results – $9.2 Billion Net)
“By having top managements go down and brainstorm together with frontline workers, we plan to reexamine the purpose, content, safety and quality of our work and strengthen our foothold. Further, we aim to create capabilities that enable us to take on further challenges and plant seeds for the future,” Toyota said in a release.
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In Japan sales increased only 5%. However Japan posted the highest earnings ~66% of Q3 profits) and at 20% the highest operating margin among its major markets.
“Over the 20- to 30-year life cycle of vehicles, we will aim to deepen our connection and establish a long-term relationship with our customers. Through having vehicles become part of the social infrastructure, we will seek to generate new value,” Toyota said. Toyota remains the top-selling Global automaker for the fourth consecutive year in 2023 with record sales of 11.2 million vehicles.
Toyota Motor’s US sales totaled 619,661 vehicles, up 15% from the year-earlier quarter, according to Cox Automotive calculations. It was the automaker’s second-best sales volume for the quarter in at least five years. Only the final quarter of the calendar year 2020 was higher at more than 660,000 units. “The Toyota brand’s ATP (average transaction price) increased 14.6% to $44,403 from a year ago and up from the previous quarter. In the final quarter of fiscal year 2022 and 2021, Toyota brand’s ATP was closer to $38,500,” according to Michelle Krebs, Executive Analyst at Cox. Noted was that Toyota brand’s ATP is affected by “hefty sales of the Corolla, Toyota’s least expensive model at $29,875. The hybrid-only Sienna, Prius and Venza had healthy gains in ATP, as did the Highlander, which is available as a hybrid. With an ATP of $58,641, the new Grand Highlander contributed to the increase in Toyota brand’s ATP. Other Toyota models had single-digit increases in ATPs.”
**Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.