Toyota expects record year thanks to high demand for hybrid cars

Toyota has raised its annual net profit forecast to 3.57 trillion yen, equivalent to over 20 billion euros, for the fiscal year ending March 31. This optimistic outlook is driven by high global demand for hybrid vehicles, an area where the Japanese manufacturer holds a dominant market position. The company also benefited from the weakness of the yen, which increases the value of overseas sales, while managing to mitigate challenges such as rising raw material costs and production disruptions caused by natural disasters.

Despite this strong financial performance, Toyota faces intensifying competition from Chinese automakers like BYD, which are rapidly expanding their presence in both the Japanese and European markets. Chinese manufacturers recently surpassed Japanese brands in European market share, reaching 13 percent in the third quarter. In response to claims of unfair competition supported by Chinese state subsidies, the European Union has implemented import tariffs and quotas. However, these measures have led to a temporary spike in sales as consumers rush to purchase Chinese models before further restrictions take effect.