Toyota Motor Corp. has upgraded its profit and sales projections for the fiscal year ending March 2026, saying internal cost controls and stronger marketing helped cushion the impact of fresh US tariffs.
In a statement on Friday, the Japanese auto giant said that although the “negative impact of US tariffs newly arose this fiscal year,” it was able to limit the extent of the expected profit decline through efficiency measures and sales efforts.
Toyota now projects net profit of 3.57 trillion yen (about $22.8 billion), up from an earlier forecast of 2.93 trillion yen. Operating profit is expected to reach 3.8 trillion yen, compared with the previous estimate of 3.4 trillion yen.
The company also raised its sales forecast to 50 trillion yen, up from 49 trillion yen.
Despite the improved full-year outlook, Toyota reported that both net and operating profit fell in the September to December quarter, even as sales increased. The company attributed the decline largely to higher expenses stemming from tariff measures.
Last month, Toyota announced that its global sales reached a record high in 2025, allowing it to maintain its position as the world’s largest automaker and widen the gap with German rival Volkswagen.
The overall growth came despite stagnant sales in China, a key market where Toyota faces mounting competition from domestic manufacturers, particularly electric-vehicle leader BYD.
In the United States, sales rose by eight per cent despite a 25 per cent tariff on Japanese auto exports imposed by Washington between April and mid-September, before a 15 per cent ceiling was introduced.