Toyota Motor Corp. has reported a big increase in its first quarter profit thanks to high demand on cars from North America and Japan.
The Japanese based automaker Toyota has announced that its net income has increased to 290,3 billion yen (3.7 billion USD) in three months ended June 30 from 1.16 billion one year earlier, becoming the highest level in four years. Severely struck by natural disasters in 2011, Toyota managed to outsell General Motors Co. and Volkswagen AG to lead the industry for two quarters straight.
“Toyota’s business results for the first quarter were strong but we should keep in mind that the sales surge was aided by domestic subsidies and new cars like the Camry in the U.S. For the three quarters left this fiscal year, the biggest concern for Toyota should be currency rate”, said a Tokyo based analyst at BNP Paribas SA, Koichi Sugimoto.
In July 2012, Toyota has almost doubled its deliveries in last quarter and sales were led by the Prius hybrid, which managed to find new owners mainly thanks to the government subsidies for fuel-efficient vehicles. The Japanese market has expanded for Toyota in the first six months by 54 percent, the fastest growth amongst the largest auto markets globally.
Toyota says that Asian markets outside Japan, which includes India and China, have contributed to 101.5 billion yen in operating income, compared to the average analyst estimate of 104.1 billion yen. In China, Toyota has delivered 16,09 million cars in 2012, an 11% rise compared to the same period of 2011.
In Europe, which is severely affected by the financial crisis, Toyota deliveries rose 20 percent last quarter and the company has posted an operating profit of 3.4 billion yen. The Japanese car manufacturer is less reliant on European demand.