In this financial year, yen has fallen nearly nine percent against the US dollar. This helps Toyota, the export-oriented car manufacturer to elevate its operating cost by almost nine percent for the same financial year. This brings them ¥2.4 trillion yen (£14billion). Recently, in a press conference, the leading manufacturer of the automobile industry reveals the fact that they are expected to earn the ransom profit of about ¥2.4 trillion yen as their operating profit. Earlier the best selling company expects to earn the profit of ¥2.2 trillion in this financial year. It is interesting to note that the reputed automaker estimated to earn the profits that will even greater than their crisis of six years earlier. It is worth mentioning over here that this crisis is known as the pre-Lehman crisis.
In the third quarter of present financial year, operating profit of Toyota is nearly ¥600.5billion that is far more than their expectation. Analysts were of the opinion that they can earn the profit of ¥575.9billion that is regarded as the five times more than the previous financial year.
Interestingly, Toyota is crowned as the best selling auto manufacturer of the world for two consecutive years in 2012 and 2013. Toyota leaves Volkswagen and general Motors behind it and lead the industry by selling almost 9.9milliom automobiles together along with Hino Motors and Daihatsu group companies. In 2014, it has targeted to sell more than 10.32 million vehicles across the globe. On the other hand, the company is determined to fulfill its target of selling 9.1million vehicles by the end of this financial year.
Analysts expect that they will enjoy a perk up in their sale, in the nation like Japan where they can sell 5000 more vehicles than their previous estimation. However, they are of the opinion that there will be downfall in sell in some nations like North America where they will lag behind 30000 vehicles than their target. Severe winter weather is considered as the rulers of this downfall but it is expected that this will be overcome in last two months of this financial year.
It is worth mentioning that in its largest market, Toyota is lagging behind the Ford and General Motors. However, due to extreme poor weather condition all the companies realize enhance in their sell. Some of analysts and economists are expected to amplify in sale in the 2014 that increase in the sales from 16m and 16.5m vehicles. Increase competition in the market will lower profits and higher incentives.