Toyota lifts profit forecast for the fiscal year to March 2026 despite US tariffs, citing cost reductions and stronger marketing efforts

Toyota lifts profit forecast after the Japanese auto giant on Friday raised its profit and sales outlook for the current fiscal year, despite battling the negative effects of United States tariffs.

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Toyota Motor Corporation said it now expects a net profit of 3.57 trillion yen for the year ending March 2026, up from its earlier forecast of 2.93 trillion yen, as cost reductions and marketing efforts softened the impact of new tariffs.

In a statement, the company said it had “reduced the extent of the profit decline” caused by US tariffs through tighter cost controls and stronger commercial performance.

Operating profit is now forecast at 3.8 trillion yen, compared with a previous estimate of 3.4 trillion yen, while sales are expected to reach 50 trillion yen, up from about 49 trillion yen.

However, Toyota said profits declined in the September to December quarter, even as sales rose, largely due to higher expenses linked to tariff pressures.

The automaker last month announced record global sales for 2025, despite ongoing trade tensions, allowing it to retain its position as the world’s top carmaker and widen its lead over German rival Volkswagen.

The overall sales increase came despite flat performance in China, a key market where Toyota faces intensifying competition from domestic manufacturers, including electric vehicle leader BYD.

In the United States, sales rose by eight per cent, even with a 25 per cent tariff on Japanese auto exports imposed between April and mid-September, before a 15 per cent cap was introduced.

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The results underline Toyota’s resilience amid global trade uncertainty, as the company continues to navigate tariff headwinds while sustaining growth in major markets.