Toyota Raises Profit and Sales Forecasts Despite US Tariff Impact

Toyota, the Japanese auto giant, has increased its profit and sales forecasts for the current fiscal year despite the challenges posed by US tariffs. The company expects a net profit of 3.57 trillion yen and sales of 50 trillion yen for the year ending March 2026.

Toyota's operating profit forecast is set at 3.8 trillion yen, up from 3.4 trillion yen. Despite a decline in net operating profit in the September-December quarter due to increased expenses from tariffs, Toyota managed to achieve record global sales in 2025.

The company faced stiff competition in crucial markets like China, where local automakers, including electric car leader BYD, intensified competition. Despite a 25% tariff on Japanese auto exports to the US, Toyota saw an 8% increase in US sales.

This growth helped Toyota maintain its position as the world's top automaker, widening the gap with its German rival Volkswagen.