The Japanese carmaker Toyota Motor, which is one of the most successful in the world, has published results in the third quarter, where for the first time in two years the fall of operating profit was recorded. Despite its high sales in previous years, 2024 brought a number of challenges to the company.
The Toyota operating profit three months before the end of September amounted to $ 7.55 billion, which is 20% less than the same period of 2023. This decrease, as expected, was the result of slowing sales and reducing production, which, in turn, was associated with harsh competition in the main markets of the company.
At the same time, the company continues to remain profitable due to its focus on hybrid models that are in demand against increasing inflation and high prices for electric vehicles with batteries.
Operational profit in North America - the largest Toyota market, which includes the United States - has decreased by reducing sales and increasing labor costs. In China, the company also faced problems due to the increase in marketing costs, as the fight for consumers with Chinese brands is becoming tougher. Chinese manufacturers offer competitive prices, which affects the results of Toyota in the region.
Despite the overall reduction in profits, Toyota continues to demonstrate strong results in the hybrid cars segment. According to the results of the third quarter, more than two -fifths of the total sales of Toyota and Lexus were hybrids, compared to the third in the same period last year. This increase in the popularity of hybrid models reflects the displacement of consumer preferences to more accessible alternatives to expensive electric vehicles.
