Toyota Raises Net Profit Forecast to 3.57 Trillion Yen on Strong Hybrid Car Demand

Japanese automaker Toyota has raised its net profit forecast for the current year, as demand for hybrid cars and various other types of vehicles remains strong. Under the new forecast, the company's net profit this year could reach 3.57 trillion yen, which is about 22.6 billion US dollars.

The world's largest automaker by sales announced the forecast on Thursday. The company said that although production was disrupted by rising raw material prices and natural disasters, it did not allow that to have a major negative effect on overall sales.

Toyota's production was disrupted at various times by earthquakes and floods, but the company was able to manage the situation. According to Toyota, fast recovery work at its production centres and effective management of its global supply system played an important role in this.

Alongside overcoming the obstacles in production and supply, the company was able to maintain vehicle supplies in various markets. Toyota cited the recovery of its production centres and the management of its supply system as the basis of that capability.

Demand for hybrid cars in particular is playing a positive role in Toyota's business. Because they are fuel-efficient, interest in hybrid cars is growing among buyers in various countries. With sales of such vehicles remaining strong alongside conventional fuel-powered cars, the company's overall sales have maintained their continuity.

The company said the opportunity to raise its profit forecast arose because it was able to retain its production and supply capability despite adversities such as higher raw material prices and natural disasters.