Toyota Fears 80% Dip in Profits This Fiscal Year Due to COVID-19 Pandemic, Hopeful of Sales Resurgence by 2020-End
In a rough estimate, Toyota said it may end up selling 7 million cars primarily owing to an expected sales rebound by the year-end. The company claimed that sales may begin gathering pace three-four months later, and may reach 90 percent of the last-year level by December.
Tokyo, May 12: Leading auto manufacturer Toyota Motor Corporation signalled a tough year for car sellers as the company predicted upto 80 percent dip in its profit for the current fiscal. The Japan-based firm, which has production facilities and sales outlets in several leading economies, said it may post a profit of just 500 billion yen ($4.7 billion) in 2020-21. Bajaj Auto Fails to Sell Single Unit in Domestic Market in April 2020, Registers Massive Loss Amid Coronavirus Lockdown.
The estimated amount is the lowest profit which Toyota would clock in the last nine years. In a statement issued on Tuesday, the company said it cannot accurately predict the number of vehicles that could be sold by it this year as the coronavirus pandemic varies in its region-to-region impact.
In a rough estimate, however, Toyota said it may end up selling 7 million cars primarily owing to an expected sales rebound by the year-end. The company claimed that sales may begin gathering pace three-four months later, and may reach 90 percent of the last-year level by December.
In the last fiscal, Toyota's total sales were recorded as around 9 million. The numbers did not include purchases of vehicles from its smaller subsidiaries including Daihatsu and Hino.
While the coronavirus outbreak has hurt most business sectors including automobile, the car manufacturers were reeling under a slowdown even before the crisis erupted. In several third world economies including India - one of the biggest consumers - a slowdown had gripped the market which had forced some of the domestic and international firms to shutdown their production facilities for several days in a row.
Apart from Toyota, another leader automobile manufacturer - Honda Motor Corporation - predicted a slump in profit this year due to the coronavirus pandemic. The company said it cannot predict the sales and profits for the current fiscal due to the lack of foresight on when the health crisis would subside.
(The above story first appeared on LatestLY on May 12, 2020 04:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).