Toyota recorded an operating income of 3.6794 trillion yen.

In the previous year, the same period coincided with the industry’s recovery from chip shortages, resulting in high production volumes.

By contrast, this year’s certification issues have led to a decrease. Combined with factors such as one-time expenses related to Hino Motors in the U.S. and additional investments in personnel, the third quarter saw income decline by 560.7 billion yen.

Despite this, the company was able to maintain a high level of income thanks to steady improvement efforts in the genba, including suppliers and dealers.

^{*Net income rose by 153.1 billion yen, including a one-time gain resulting from the revision of accounting procedures related to foreign currency holdings.}

Toyota forecasts a year-end operating income of 4.7 trillion yen. The figure has been adjusted upward by 400 billion yen since the previous announcement in November, despite sales volumes remaining unchanged, thanks to improvements brought about by price revisions, controlling sales incentives, and increasing value chain earnings.

Executive Vice President Yoichi Miyazaki explained Toyota’s earning power, saying, “It is driven by our production levels recovering and stabilizing, our ability to keep delivering highly attractive products through ever-better carmaking, and the fact that different countries and regions continue to learn from each other and engage in activities that bring smiles to our customers’ faces.”

As part of the previous results in November, Toyota announced additional investment in human resources and growth areas. This time around, the company provided specific examples of growth area investments.

First was the launch of a new company in Shanghai, China, tasked with the development and local production of Lexus BEVs and batteries.

Establishing a company that handles everything from development to production will enable Toyota to offer vehicles tailored to local needs swiftly.

Production is scheduled to begin in 2027 or beyond. At the outset, the company will employ approximately 1,000 people and will gradually expand its initial production capacity of 100,000 vehicles.

While current production operations in China are joint ventures with local manufacturers, the new company will be entirely funded by Toyota.

The other announcement was the opening of Toyota’s first overseas in-house battery manufacturing facility, TBMNC (U.S.). With production preparations complete, the plant is set to begin shipping batteries in April.

TBMNC will produce batteries for Toyota’s hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and BEVs.

The company announced a total investment of approximately $14 billion, with plans to ultimately create some 5,000 new jobs.

The development and production of electrified vehicles and batteries will further strengthen a multi-pathway strategy tailored to local needs. Toyota strives to be a “best-in-town” company that is loved and trusted in every country and region where it operates.

Another topic raised at the financial results briefing was Woven City, following Chairman Akio Toyoda’s presentation at CES 2025 in January.

This “test course for mobility” is set to open its doors in the fall of 2025, bringing together inventors who share Toyota’s ambitions for the future.

To team up with various partners in the auto industry and beyond. To create new value, products, and services, contributing to happiness for all.

Speaking at the results briefing, Vice President Miyazaki revisited this vision laid out by Chairman Toyoda.

Since the labor-management discussions in 2024, Toyota’s management team and unions have continued to focus on the area of investment in human resources, including suppliers and dealers, which has led to various initiatives.

Concluding the results presentation, Vice President Miyazaki also touched on this topic, sharing a commitment to making the automotive sector more attractive and boosting the industry’s competitiveness.