Toyota sold fewer cars but nearly doubled profit on cheap yen

Toyota's fiscal first quarter profit nearly doubled to 1.48 trillion yen ($9.4 billion) in April-June 2025, up from 841 billion yen in the same period last year. This growth was primarily due to solid demand in the U.S. and India, alongside a favorable exchange rate. The weakening yen added 345 billion yen ($2.2 billion) to the company's operating profit for the quarter.

Toyota sold 2.39 million vehicles globally in the quarter, slightly fewer than the 2.41 million sold a year earlier. However, the company expects to sell 9.7 million vehicles for the entire fiscal year, up from 9.595 million in the previous fiscal year. Despite the global slowdown, Toyota hybrids, including the Camry and RAV4, are selling well in the U.S., while the Urban Cruiser and Innova Hycross are popular in India, and the Yaris is a strong seller in Thailand and Europe.

Political instability in the Middle East and the 7.1 magnitude earthquake in Kumamoto have impacted Japanese automakers, but Toyota is working on alternative shipping routes and resuming production in affected plants. The company projects a 3.25 trillion yen ($20.6 billion) profit for the full fiscal year, down from 3.85 trillion yen a year earlier, but ahead of the 50.7 trillion yen ($342 billion) annual sales forecast.