Toyota hikes profit, sales forecasts despite US tariff impact

Japanese auto giant, Toyota, said on Friday it had hiked its profit and sales forecasts for the current fiscal year, as it battled the effects of US tariffs.

Despite the “negative impact of US tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts”, the firm said in a statement.

For the year ending March 2026, it expects to see a net profit of 3.57 trillion yen ($22.8 billion), up from 2.93 trillion yen. Operating profit is forecast to hit 3.8 trillion yen, up from 3.4 trillion yen.

Sales are expected to hit 50 trillion yen, compared with 49 million yen.

The firm announced last month that global sales hit a new record in 2025, despite trade tensions, helping it retain its title as the world’s top automaker and widen the gap with German rival Volkswagen.

The overall increase came despite flat sales in China, a crucial market where Toyota faces intensifying competition from local automakers, including electric-car champion BYD.