Toyota Motor’s Financial Results for Fiscal Year 2020

Toyota’s consolidated results for fiscal 2020 were as follows: operating revenue decreased 8.9% year-on-year to 27.2 trillion JPY and operating profit dropped 8.4% to 2.2 trillion JPY. Operating profit fell below the previous fiscal year’s level because of a decline in the number of vehicles sold due to the outbreak of the new coronavirus infection. On the other hand, pretax profit rose 5.0% to 2.9 trillion JPY due to an increase in non-operating profit. Toyota has been lowering its break-even unit volume by improving total costs, which it has been working on since the Lehman shock, and this is a factor behind the increase in profits.

In fiscal 2020, consolidated automobile sales fell 14.6% to 7.64 million units. Due to the corona crisis, sales fell 33.4% to 3.08 million units in the first half of the fiscal year, but in the second half, sales in Japan, North America and Europe exceeded the previous fiscal year’s results, and as a result worldwide sales rose 5.5% to 4.56 million units. Operating profit rose in line with the recovery in the automobile market, from 13.9 billion JPY (-98.1%) in the first quarter and 506 billion JPY (-23.2%) in the second quarter to 987.9 billion JPY (+54.3%) in the third quarter and 689.8 billion JPY (+91.7%) in the fourth quarter. Operating profit declined in Japan, Europe, and other regions (Central and South America, Oceania, etc.), but increased in North America and Asia thanks to sales and cost reduction efforts.