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Toyota Q1 2025 sales rise but profit drops as costs bite, outlook steady

David Ijaseun by David Ijaseun
August 12, 2025
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Toyota profit in Q1 2025
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Toyota Motor Corp. has said it sold more cars but earned less profit in its latest quarter, as rising costs and weaker results in key markets offset revenue gains. The world’s largest automaker delivered 2.41 million vehicles in the April–June 2025 quarter, up 159,000 units from a year earlier. Net revenue climbed 3.5% to 12.25 trillion yen ($84.5 billion).

However, operating income slipped from 1.31 trillion yen ($8.4 billion) to 1.17 trillion yen ($8.0 billion). Net income fell more sharply, down 37% to 841 billion yen ($5.8 billion).

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“We’re seeing healthy demand, but cost pressures and weaker margins in some regions remain challenges,” a Toyota spokesperson said in a press release.

Regional performance mixed

  • North America: Sales jumped from 89,000 to 794,000 units, but operating losses widened to 63.6 billion yen ($438 million).
  • Japan: Sales rose from 60,000 to 481,000 units, but profit fell by 241.8 billion yen ($1.66 billion).
  • Europe: Sales added 7,000 to 298,000 units, while operating income dropped by 26.4 billion yen ($182 million).
  • Asia: Sales slid from 15,000 to 421,000 units, with profits down 23.9 billion yen ($164 million).
  • Other regions: Sales grew from 19,000 to 417,000 units, lifting profit by 64.8 billion yen ($446 million).

Financial services shine

Toyota’s financial services arm was a bright spot, with operating income up 19 billion yen ($131 million) to 188 billion yen ($1.3 billion). Including valuation gains, profit jumped to 222.2 billion yen ($1.5 billion).

Full-year outlook unchanged

For the year ending March 31, 2026, Toyota expects to sell 9.8 million vehicles and post 48.5 trillion yen ($334.5 billion) in revenue while net income is forecast at 2.66 trillion yen ($18.3 billion). “Global demand is steady, and we are focused on long-term growth despite short-term headwinds,” the spokesperson added.

Read more on Tariffs slash Toyota’s profit forecast by $9.5bn, threatening jobs and car prices

Tags: HeadlineQ1 2025Toyota

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