Suryaa Business Desk: Global automobile giant Toyota Motor has announced its financial results for the July-September quarter. The company reported a 34 percent increase in operating profit, reaching 1.13 trillion yen ($7.1 billion). This growth follows six consecutive quarters of decline in operating profits.
Experts attribute this performance to the strength of the yen and demand for hybrid vehicles, despite a decline in car sales within China and the Middle East. In the North American market, sales of hybrid and electrified vehicles grew by more than 30 percent, contributing to the company's revenue. The sale of hybrid cars, which offer higher margins than traditional vehicles, improved overall profit margins.
Total global sales for Toyota and Lexus brands decreased by four percent to approximately 2.5 million units. Sales in China declined by nearly 22 percent due to increased competition. Despite the drop in unit sales, cost-control measures and favorable currency effects helped operating profits exceed expectations. Toyota is planning investments in automation, vehicle software, and autonomous driving technology.