[Source/Observer Network by Pan Yuchen, edited by Gao Shen] Faced with Trump's tariff threats on imported cars and auto parts, Toyota Motor still insists on its production plan of 3 million vehicles in Japan.

According to reports from the Nikkei Asian Review, the Yomiuri Shimbun, and Reuters, Toyota previously stated on May 8th that due to the weakness of the US dollar and the impact of tariffs, the company's profit in the fiscal year 2025 (April 2025 - March 2026) is expected to decline by one fifth.

Despite the significant threat from tariffs, Toyota President Sato Koji emphasized that the company will "steadfastly protect domestic production." Toyota has been maintaining an annual domestic production of at least 3 million vehicles for several consecutive years, and this plan remains unchanged for the next fiscal year. Sato Koji stated that protecting domestic production and supply chains, as well as earning foreign exchange through exports, are very important for the manufacturing industry.

Toyota President Sato Koji Yomiuri Shimbun

In response to the challenge of tariffs, Sato Koji said that Japan's annual car exports to the United States amount to about 500,000 units. In the short term, the export destinations may be adjusted, while in the medium to long term, products will be developed locally and produced locally. Meanwhile, Toyota will not consider passing on the cost of tariffs to vehicle prices in the short term, but may do so at the "right time."

According to Toyota's estimates, the operating revenue for the fiscal year 2025 is expected to reach 48.5 trillion yen (approximately 2.4 trillion RMB), an increase of 1%; operating profit is expected to reach 3.8 trillion yen (approximately 189.5 billion RMB), a decrease of 20.8%. Losses for just April and May alone will amount to 180 billion yen (approximately 8.96 billion RMB).

In addition, the appreciation of the Japanese yen is also a potential reason for the possible decline in Toyota's annual performance. Toyota expects that for every 1 yen appreciation of the Japanese yen against the US dollar, the company's profit will decrease by 50 billion yen (approximately 2.49 billion RMB).

Sato Koji stated that since the details of the US tariffs have yet to be determined, it has increased the difficulty of predicting future performance. Additionally, as the potential for declining performance increases, Toyota's investment in automotive intelligence technology may also slow down.

According to Toyota's estimates, global sales (including Lexus) for the fiscal year 2025 are expected to reach 10.4 million units, an increase of 1.2%. Among these, the sales volume of electrified models is expected to reach 5.184 million units, accounting for nearly half of total sales.

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