Toyota’s half-year net profit rises 26.1% as retail vehicle sales fall

Toyota's profit increase, reaching 2,236.4 billion yen, came as its global retail vehicle sales fell. This sales decline was partially due to the exclusion of Hino Motors, Ltd. from consolidated results, suggesting a nuanced picture for overall volume. The company attributed its stronger earnings to an intensive cost-cutting drive, which helped offset a 465 billion yen impact from higher raw material prices. Additionally, a weaker yen, higher revenue from repairs and maintenance, and a smaller impact from US tariffs on North American operations contributed to the improved financial performance.

The carmaker plans to establish a new robotics division in January 2027, aiming to integrate its robotics staff and functions. Executive vice-president Yoichi Miyazaki stated this initiative represents the "digitalization and automation of the Toyota Production System," indicating a strategic move to deploy robots within its own plants before considering commercialization. This step aims to make robotics, including factory automation, a core business for Toyota.

This focus on automation appears to support Toyota's broader growth strategies, including efforts to strengthen competitiveness in markets like China by increasing local supplier engagement. While hybrids are noted as underpinning its current sales base, the company is also looking to electric vehicles for future growth beyond its target of approximately 10 million vehicles sold annually. The robotics initiative could serve as a foundational element in improving manufacturing efficiency to support these ambitions.