Strong demand for hybrid vehicles is expected to support stable profits at Toyota, the world’s largest automaker, as it reports its annual earnings, despite concerns about the looming impact of US tariffs.
Investors will closely monitor how Toyota handles the impact of US President Donald Trump’s tariffs on its future profits, as these are expected to deal a significant blow to automakers operating in the United States.
In the fourth quarter, the Japanese automaker is expected to post a 2% year-on-year increase in operating profit to $7.86 billion, according to analysts familiar with Toyota’s data. This would represent the first increase in three quarters.
Sales data already indicated that the company’s momentum held at the start of the year, with Toyota’s global sales up 5% in the January-March period compared to the previous year, driven by strong demand in its core markets, the United States and Japan.
According to leaks, Toyota is planning to increase production of some of its successful models in the United States to avoid Trump’s import tariffs, the most significant of which is the RV4.
