Toyota Motors Corp. Q2 Profits Set Record Breaking Sales
Recent reports from Toyota Motors revealed record breaking sales in the April-September quarter. The automotive manufacturer claims sales rose 2.6 percent as compared to 2018 to record ¥1.27 trillion ($11 billion). One of the significant reasons for this is the increased sales in Japan, China and Europe.
Speaking on the terrific results, Executive Vice President Mitsuru Kawai said, “As a result of our work to improve ourselves, many people chose Toyota vehicles. The latest results show that. We are grateful.”
The consolidated operating profit of Toyota Motors surged 11.3 percent to 1.40 trillion due to the improvement in sales. Till March 2020, Toyota has stood up to its earnings outlook, hoping to get a group net profit of ¥2.15 trillion, up 14.2 percent.
As per a statement released by Toyota Motors, cost reductions and good marketing strategies helped ignore the negative impacts from foreign exchange rates, thereby contributing to operating profit.
While competition is intensifying in the global automotive market, Toyota Motors is enjoying steady increase in sales worldwide. With the rising demand for hybrid cars, as said by Satoru Takada, an auto analyst at a research firm, TIW, “Toyota continues to be strong as electric cars are still in transition period.”
Demand in India, Thailand and Indonesia has slightly dropped as group global sales went from 10.73 million units to 10.70 million units. Even then, full year global sales have reached a record volume with the launch of new Toyota models like Corolla sedan and RAV4 sport-utility vehicles.
Commenting on future plans of Toyota Motors Corp, Operating Officer Kenta Kon, “We are in a phase of transforming ourselves to a mobility company and proactively undertaking investments for the future and creating friends.”
Furthering its ideation of friendships, Toyota Motors has set up a joint venture with BYD Company, owned by Warren Buffett’s Berkshire. The two firms announced in a joint statement on November 7 that both would invest 50 percent capital to initiate a joint venture that would deal in battery-electric cars. Details about the total value of the venture remain unknown.
Toyota Motors Corp. and BYD plan to hire employees from their respective companies. Executive Vice President of Toyota Motors said that the firm “had the same goal to further promote the widespread use of electrified vehicles.”
Meanwhile, reports came out on November 5 that authorities in the UAE recently seized and destroyed Dh26 million worth of fake Toyota spare parts in a number of raids carried out in 2019 across Dubai and Sharjah. The authorities together with Al Futtaim Motors, the exclusive distributor of Toyota Motors in the UAE, conducted five raids on fake car part dealers in Q3 2019.
Sale of counterfeit parts, not only tarnish the image of Toyota Motors, but also expose people to greater dangers as the possibility of high-risk failures always looms overhead in case of fake automotive parts.
In such a scenario, it remains doubtful if Toyota Motors will be able to keep its sales graph marching on the upward side.
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