After breaking news about Tesla cutting more than 10 percent of its workforce last month, which included the complete disbandment of the team behind its Supercharger network, Electrek reports that another round of layoff is imminent. At the same time, Toyota has just posted its highest ever group operating profit for financial year ending March 2024 (FY2024), at 5.35 trillion Yen, or RM 163.6 billion.

The figure is nearly doubled that FY2023’s profit of 2.73 trillion Yen (~RM 83.4 billion). Toyota’s profit margin is also rose from 7.3% to 11.9%, making it one of the more profitable car companies in the world.

Sales of its core Toyota and Lexus models reached a new record high of 10.309 million units. Group-wide total sales, including Daihatsu and Hino, reached 11.090 million units.

Toyota credits growing demand for hybrids as one of the reasons behind the stellar performance. Hybrids (excluding plug-in hybrids) constituted 34.8% of Toyota and Lexus vehicles sold in FY2024. Sales of hybrids were up 32.1% from the previous financial year.

With minimal exposure to the slowing market for battery EVs (BEVs), Toyota was shielded from the need to do heavy discounting to move BEV models. Quite the opposite, demand for hybrids was outstripping supply, leading the upward price revisions for some of its popular models.

Toyota says its operating income in all its major markets, including Asia, adding that the boost is “mainly supported by price revisions based on product competitiveness.”

Earnings in China exclude investments accounted using the equity method of associates and joint ventures.

Sales were up in all regions, including China, except for Japan, which is down 3.7 percent. Sales in Toyota’s domestic market was affected by suspension in deliveries of Daihatsu and certain Toyota models, following the discovery of improper vehicle testing and homologation work done by Toyota’s compact car subsidiary Daihatsu Motor and engine development contractor Toyota Industries.

Favourable exchange rate was also another factor boosting Toyota’s earnings.

However, Toyota has no intention of building even more cars or gaining even higher profits.

For FY2025, Toyota is aiming for a much lower 4.3 trillion Yen profit, (~RM 131.4 billion, 18.8% less than FY2024), adding that it wants to spend more to strengthen its human capital, in response to the recent shortcomings uncovered at Daihatsu and Hino.

As for sales, Toyota is targeting a modest 0.9 percent increase, to 10.4 million units total for Toyota and Lexus. Overall group-wide sales will be reduced by 1.3 percent to 10.95 million units, implying a reduced target for Daihatsu and Hino.

R&D expenses will also be increased by 500 billion Yen (~RM 15.3 billion), to reach a new high of 1.7 trillion Yen (~RM 52 billion).

Toyota is also sharing its record high profit with dealers and suppliers. Of the 380 billion Yen (~RM 11.6 billion), 79 percent is allocated to them, not as additional payment, but to support their efforts to create better working environments for their employees.