Toyota Motor Corporation has announced its financial results for the fiscal year ending March 2024, posting an impressive operating income of 5.3529 trillion yen. Executive Vice President and Chief Financial Officer Yoichi Miyazaki detailed the financial figures, while President Koji Sato outlined the company’s strategic direction and forecasted an operating income of 4.3 trillion yen for the upcoming fiscal year.
President Sato emphasized Toyota’s commitment to investing 2 trillion yen towards future growth, focusing on people, including suppliers and dealers, and advancing the company’s transformation into a mobility company. The key themes for Toyota’s transformation in fiscal 2025 include battery electric vehicles (BEVs), hydrogen, engines, software-defined vehicles (SDVs), and strengthening the company’s foundations.
President Sato expressed gratitude to customers and stakeholders, highlighting Toyota’s success attributed to its diverse product lineup and robust business foundation. He outlined a vision for sustainable growth through transforming into a mobility company, enhancing mobility of energy and data, and fostering a renewable energy-centric society.
Key themes for Toyota’s future growth include:
- Battery Electric Vehicles (BEVs): Toyota is advancing its BEV technology, focusing on aerodynamics, heat management, and lightweight powertrains, which will also benefit plug-in hybrid development.
- Hydrogen: Toyota is accelerating the commercialization of hydrogen technologies across various regions and applications, including mobility, trains, ships, and generators, particularly in high-consumption markets like Europe, China, and North America.
- Engines: Toyota remains committed to developing next-generation internal combustion engines, focusing on e-fuels and other liquid fuels even as the energy landscape shifts towards electricity and hydrogen.
- Software-Defined Vehicles (SDVs): Toyota is developing its Arene on-vehicle operating system and investing in AI technologies, automated driving, and strategic partnerships beyond the automotive industry to enhance mobility and daily life services.
- Strengthening Foundations: Toyota aims to address operational inefficiencies and lack of reserve capacity by investing 380 billion yen in human resources and work foundation improvements, ensuring safety, quality, and skilled workforce development.
President Sato emphasized the importance of execution and collaboration with partners to achieve a mobility-based society. In the following Q&A session, he elaborated on the need for major changes to transform Toyota’s business structure, predicting that clear job descriptions and proper execution of basic operations will ultimately enhance productivity and efficiency.
Toyota’s strategic investments and commitment to innovation reflect its dedication to shaping the future of mobility while maintaining its core strengths as a carmaker.
