Toyota's Hybrid Strategy and Weak Yen Boost Q1 Profits

Toyota reports a healthy profit hike for the first quarter of 2024 despite a slump in vehicle sales globally.

The world’s top-selling automaker posts a 17% rise in profits for the period thanks to booming sales of hybrid powertrain products, its ongoing cost-cutting efforts and a weaker yen at the beginning of the year. Its operating profit for the three months ending in March realized 1.3 trillion yen ($8.7 billion), matching the average of six analyst estimates, Reuters reports.

Nonetheless, investors reacted adversely to the figures, which are the weakest of the past seven quarters, seeing the company’s share price dip by 8%.

In a statement, the company says: “Despite the inability to maintain stable production in Japan due to factors such as certification issues and recalls, we achieved an increase in profit thanks to the support of all our stakeholders.”