Toyota Motor reported a 21.5% decline in operating income for FY26 as US tariffs, higher costs and foreign exchange headwinds pressured profitability despite resilient vehicle sales and pricing.
The Japanese automaker posted operating income of Y3.76tn ($39.81bn) for the fiscal year ended March 2026, with a Y1.38tn tariff impact outweighing benefits from higher vehicle sales volumes, pricing revisions and growth in value chain revenues
Full-year sales revenues increased 5.5% year-on-year to Y50.68tn, while net income attributable to Toyota fell 19.2% to Y3.84tn. Total consolidated vehicle sales rose 2.5% to 9.595 million units during the year. Toyota and Lexus vehicle sales reached 10.477 million units, while total retail vehicle sales increased to 11.283 million units.
Electrified vehicle sales exceeded five million units for the first time. Hybrid electric vehicle sales increased 4.4% to 4.62 million units, while plug-in hybrid sales rose 8.6% to 175,000 units and battery electric vehicle sales jumped 68.4% to 243,000 units. Regionally, Japan remained Toyota’s largest profit contributor, although earnings were affected by currency movements and higher operating expenses.