Toyota Motor Corporation (TM)

Toyota opened its fiscal year to March 2027 with sales revenues of 13,525.4 billion yen in April to June, up 10.4 percent 2. Operating income, the profit from making and selling cars, fell 8.8 percent to 1,063.4 billion yen, and the operating margin slipped to 7.9 percent from 9.5 percent 23.

A weaker yen helped, adding 345.0 billion yen, while higher spending and the Middle East situation cut into profit 23. Net income attributable to the company still rose 75.6 percent to 1,477.0 billion yen, lifted by other income of 900.3 billion yen against 86.0 billion a year before 23.

On 4 August Toyota raised its full-year operating income forecast to 3,400.0 billion yen from 3,000.0 billion and set up a repurchase of up to 1,000 billion yen of its own shares 34. By 30 September it had repurchased 63,766,500 shares under that plan 5.

Two questions stay open 13. United States tariffs took 1,380.0 billion yen out of operating income in the year to March 2026 1. The damage from the 2026 Kumamoto earthquake is still under assessment, the company says 3.

Toyota began in 1933 as the car division of a loom maker, Toyoda Automatic Loom Works, and became its own company in August 1937 1. Its car maker and its sales company merged in 1982 into today's Toyota Motor Corporation 1.

The pandemic year to March 2021 was the low point of the recent record: Toyota sold 7,646 thousand vehicles for sales revenues of 27,214.5 billion yen 12. Operating income fell 8.4 percent to 2,197.7 billion yen, mainly because of exchange rates as the economy hit bottom from April to June 2020 12.

In the year to March 2022 the global semiconductor shortage forced production cuts worldwide, yet operating income rose 36.3 percent to 2,995.6 billion yen on 8,230 thousand vehicles 11. In the year to March 2023, raw material costs took 1,290.0 billion yen, and operating income fell 9.0 percent to 2,725.0 billion yen despite a weaker yen 10.

The year to March 2024 was the peak: as chip supply eased, Toyota sold 9,443 thousand vehicles and revenue reached 45,095.3 billion yen 9. Operating income nearly doubled, up 96.4 percent to 5,352.9 billion yen, led by 2,000.0 billion yen from what Toyota calls marketing efforts, meaning more sales, richer models and price changes 91.

Then came trouble over certification, the tests that prove a model meets government standards 1. Group companies Hino and Daihatsu disclosed certification problems in March 2022 and April 2023 1. Toyota itself received a correction order from Japan's transport ministry in July 2024 1.

In the year to March 2025, operating income fell 10.4 percent to 4,795.5 billion yen as expenses rose by 990.0 billion yen 8. That year carried 281,140 million yen of costs for Hino's engine certification misconduct 1.

The year to March 2026 brought record revenue of 50,684.9 billion yen on 9,595 thousand vehicles, but operating income dropped 21.5 percent to 3,766.2 billion yen 1. The main reason was the 1,380.0 billion yen cost of United States tariffs on imports, raised in 2025 1.

The same stretch reshaped the group, as Toyota Fudosan, a Toyota affiliate, completed a tender offer for Toyota Industries on 24 March 2026, and Toyota Industries left the stock exchange on 1 June 2026 1. Hino stopped being a Toyota subsidiary on 1 April 2026, when it combined with Mitsubishi Fuso Truck and Bus 1.

How the business makes money

Toyota designs, builds and sells cars, minivans and trucks, and lends money to the people and dealers who buy them 1. In the year to March 2026, cars brought in 45,201,924 million yen of sales to outside customers, financial services 4,819,003 million and all other businesses 664,026 million 1.

North America is the largest market, with 20,661,490 million yen of sales and 30.6 percent of the vehicles Toyota sold 1. Japan took 21.7 percent of units, Asia 18.3 percent and Europe 12.3 percent 1.

Hybrids, the heart of the lineup

A hybrid pairs a petrol engine with an electric motor and a small battery that the car charges itself 1. Toyota and Lexus hybrid sales rose to 1,238 thousand in April to June 2026 from 1,160 thousand a year earlier 3.

In September 2026, electrified models made up 58.2 percent of Toyota's United States sales, and 117,215 of the 201,306 vehicles it sold there 13.

RAV4, Camry and Tacoma

The RAV4 is a mid-size sport utility vehicle, and the all-new sixth generation launched in the year to March 2026 1. Carscoops wrote that it "adds hybrid power across the board" and listed "excellent refinement" against a "droning CVT" and "numb steering" 15.

The Autopian, the same day, rated front-wheel-drive models at 44 MPG combined and found the car only "slightly quieter on the freeway than the old car" 16. It noted the old RAV4 was the world's best-selling car the year before, citing JATO Dynamics 16.

The 2026 RAV4 starts at $31,900 before options on Toyota's own page 17. United States RAV4 sales were 253,664 in January to September 2026, against 358,134 a year before, during the change of generation 131.

The Camry sedan is now sold only as a hybrid, rated at 51 combined MPG on the LE trim, and the 2027 Camry starts at $29,700 18. Its United States sales rose 11.2 percent to 260,684 in January to September 2026 13.

The Tacoma pickup starts at $32,545 for 2026, and 214,875 were sold in the United States in January to September 2026 1913. Carscoops weighed the RAV4 against rivals such as the Ford Bronco Sport and the Volkswagen Tiguan 15.

Lexus, Daihatsu and the other brands

Toyota now runs five brands: Toyota, Lexus for luxury, Daihatsu for small cars, GR for sports models and Century, launched as a brand in October 2025 1. Lexus sold 262,768 vehicles in the United States in January to September 2026, down 2.9 percent 13.

Battery electric cars

Battery electric cars run on a large battery alone 1. Toyota and Lexus sold 114 thousand of them in April to June 2026, up from 47 thousand, and Toyota targets 3.5 million a year by 2030 31.

Its battery plant in North Carolina, its eleventh United States plant, began supplying batteries in 2025 1.

Financial services

Toyota's lending arm earned sales revenues of 4,857.1 billion yen and operating income of 851.7 billion yen in the year to March 2026 1. About 40 percent of Toyota's United States sales came with a Toyota loan or lease, and credit losses stayed at 0.43 percent 1.

Markets and rivals

Toyota sold 50.9 percent of new cars in Japan, leaving out the smallest kei cars, in the year to March 2026 1. Its retail share was 15.1 percent in North America and 6.6 percent in Europe in 2025 1.

In China it works mostly through joint ventures with China FAW Group and Guangzhou Automobile Group, and it held 7.4 percent of locally built passenger cars in 2025 1.

Plants and people

Toyota has 16 production sites in Japan and more than 50 overseas manufacturing organizations in 27 countries and regions 1. It employed 390,927 people on 31 March 2026, and about 87 percent of its regular employees in Japan belong to the union 1.

Kenta Kon, a former finance chief, is president, Akio Toyoda is chairman and Yoichi Miyazaki is chief financial officer 1. Koji Sato, president before Kon, was due to leave the board at the meeting of 17 June 2026 1.

Current problems

Tariffs remain the largest, since the annual report says the higher United States rates were still in effect when it was filed 1. Reuters reported a United States recall of 228,367 Toyota vehicles whose seat backs may not stay secured in a crash 14.

In Australia, Toyota faces a class action over diesel particulate filters, the parts that trap engine soot 1. The Middle East situation cut 50.0 billion yen from operating income in April to June 2026 3.

The umbrella, in words

Toyota works through 602 consolidated subsidiaries and 159 associates and joint ventures 1. The annual report lists its principal subsidiaries, among them Daihatsu, Woven by Toyota for software and Toyota Motor Credit in the United States, each fully owned 1.

It owns 51 percent of Prime Planet Energy & Solutions, a battery maker, and 90 percent of Toyota Battery Manufacturing in the United States 1.

Toyota reported owning about 13.1 percent of Joby Aviation, the electric air taxi company, in a filing of 30 June 2026 6. On 9 September 2026 it reported owning no shares of Grab, the Southeast Asian ride app 7.

After Toyota Industries was taken private, Toyota owns one share of it and plans to dispose of its holding in the year to March 2027 1.

No company or person controls Toyota, the annual report says 1. Toyota Industries, once its largest shareholder with 9.17 percent, tendered its shares back to Toyota, which repurchased 1,192,330,962 shares for about 3.65 trillion yen 1. No share class carries extra votes 1.

For the year to March 2027, the company forecasts sales revenues of 54,000.0 billion yen, operating income of 3,400.0 billion and net income of 3,250.0 billion 3. The forecast assumes 160 yen to the dollar and leaves out the Kumamoto earthquake 3.

The company plans a dividend of 100 yen a share for the year, up from 95 yen 2.

The repurchase plan allows up to 500 million shares or 1,000 billion yen from 5 August 2026 to 4 August 2027, and the board plans to cancel 200 million shares 4. Toyota says the aim is to improve capital efficiency 4.

On factories, Toyota plans Tacoma production of 150,000 a year in Texas from 2030 and a fourth plant in India of 100,000 a year from 2029 3. It plans to move about 600,000 vehicles' worth of hybrid battery capacity to a next generation in 2027 to 2028 3.

For the year to March 2027 the annual report lists planned plant spending of 850.0 billion yen at Toyota Motor Corporation and 260.9 billion yen in Kentucky 1.

Toyota aims to bring all-solid-state batteries, which use a solid instead of a liquid inside, to market between 2027 and 2028 1. It plans a Lexus electric car plant in Shanghai from 2027 onward, starting at about 100,000 a year 1.

It plans a next-generation fuel-cell unit, which makes electricity from hydrogen, starting in the year to March 2027 1.

Toyota plans to build a facility called Hydrogen Park at its Honsha Plant in 2026 to test large hydrogen production systems 1. Woven City, its test town for new mobility, opened on 25 September 2025, and the company plans to welcome the general public later 1.

Toyota also said it would ship three United States-built models, the Camry, Highlander and Tundra, for sale in Japan in 2026, Automotive Logistics reported 20. That followed a 2025 deal that set United States tariffs on Japanese vehicles at 15 percent 20.