Japan’s Toyota reports hefty profit on cheap yen and solid car sales

Toyota, the renowned Japanese automaker, announced on Tuesday that its profit for the fiscal first quarter surged nearly double, reaching 1.48 trillion yen ($9.4 billion). This significant increase can be attributed to a combination of solid demand in the United States and India, as well as a favorable exchange rate that boosted results. The Japanese company, which manufactures the popular Prius hybrid and luxury Lexus models, witnessed a 10% year-on-year rise in quarterly sales, totaling 13.5 trillion yen ($85 billion).

The weakening of the yen against the US dollar has played a crucial role in Toyota's financial success. During the April-June period of 2025, the exchange rate was approximately 145 yen, whereas it stands at around 160 yen for the same period this year. This change, attributed to a joint market intervention by the United States and Japan last week, has added 345 billion yen ($2.2 billion) to the automaker's quarterly operating profit for the April-June quarter.

Despite selling fewer vehicles globally in the quarter just ended, with 2.39 million vehicles compared to 2.41 million a year earlier, Toyota remains confident in its future prospects. The company anticipates a strong sales performance for the full fiscal year, projecting sales of 9.7 million vehicles, up from 9.595 million in the previous fiscal year.

Chief Officer Takanori Azuma highlighted the enduring demand for Toyota's hybrid vehicles in various global markets, including the United States, where popular models like the mid-size Camry sedan and compact SUV RAV4 have been selling briskly.