Toyota Motor Corporation expects battery electric vehicle sales to more than double this financial year as the company expands its EV line-up across China, Europe and North America.
The forecast came as Toyota reported record global revenue of 50.68 trillion yen (about NZ$544 billion) for the year ending March, making it the first Japanese company to surpass the milestone despite a sharp fall in profit.
Toyota says battery EV sales are forecast to rise from 243,000 vehicles in FY26 to 598,000 vehicles in FY27.
However, hybrids remain the dominant part of the company’s electrification strategy, with hybrid sales forecast to exceed five million units globally for the first time.
Total electrified vehicle sales — including hybrids, plug-in hybrids, battery EVs and fuel-cell vehicles — are projected to rise from 5.04 million to 5.96 million vehicles.
Overall vehicle sales across the Toyota group rose 2.5% to 11.28 million units during the financial year.
Despite record revenue, net profit fell 19.2% to 3.85 trillion yen (NZ$41.3 billion), while operating profit dropped 21.5%.
Toyota says higher United States tariffs and the ongoing Iran conflict reduced operating profit by 1.38 trillion yen (NZ$14.8 billion).
The company estimates the Iran conflict alone could cost about NZ$46.2 billion this financial year through higher fuel prices, transportation costs and raw material expenses.
Toyota chief accounting officer Takanori Azuma says the impact is being felt across multiple parts of the business, including logistics and manufacturing materials.
Japan imports about 70% of its aluminium from the Middle East, leaving Toyota exposed to supply and pricing pressures linked to the region.
The company was also impacted by US tariffs on Japanese vehicle imports introduced under President Donald Trump, with Toyota estimating the measures cost around 1.4 trillion yen (NZ$15 billion) during the year despite later tariff reductions.
The results are the first annual earnings report under Toyota president Kenta Kon, formerly the company’s finance chief.
“Rather than hitting the brakes, we believe the earnings put us in a position to identify areas of waste and transform our structure step by step,” Kon says.
Looking ahead, Toyota expects net profit to fall a further 22% this financial year, while operating profit is projected to decline 20.3%.
Global sales are forecast to ease slightly to 11.18 million vehicles, although the company expects continued growth in electrified vehicle demand led by hybrids and battery EVs.
