Toyota share price jumps as profits rise 155 per cent on record car sales
Toyota’s shares rose over five per cent on the Tokyo stock exchange this morning after profits at the world’s biggest carmaker more than doubled.
Quarterly operating profits came in at ¥1.4trn (£7.61bn), rising over 155 per cent on the prior year on improved global supply chains.
The Japanese automaker lifted its annual profit forecast to ¥4.5trn, up from ¥3trn, a decision it said was primarily influenced by a weaker yen.
It said half year car sales had risen in all regions after it sold a record 5.6m vehicles in the second quarter, maintaining its position as the best-selling automaker in the world.
The booming performance gifted shareholders with a bumper interim dividend, now at 30 yen per share and up from five yen last year.
Unveiled in June, Toyota’s new “next generation” battery tech gives EVs longer range and shortened charging time, while the batteries are more durable.
Battery electric vehicle sales rose more than sixfold in the first half to 59,000, although the carmaker lowered its EV sales target for the year.
Toyota yesterday said it planned to invest $8bn and create 3,000 jobs at its EV battery manufacturing plant in North Carolina. Shares in the group are up over 50 per cent this year to date.
Chief executive Koji Sato, who took the helm in Janaury, has eyed up a sales target of 1.3m battery electrics per year by 2026.
Chinese electric vehicle brands including the Warren Buffet-backed BYD, SAIC Motor and Xpeng remain well ahead in the green transition, posing a significant hurdle for the company.