Toyota Announces Global Annual Results and Reconfirms Commitment to Carbon Neutrality

• Global vehicle sales of 7.646m units, down by 1.309m units
• Global net revenue of 27,214.5 bn yen (219.5 bn EUR), down by 2,651.9 bn yen
• Global net income of 2,245.2 bn yen (18.1 bn EUR), up from 2,036.1 bn yen
• Toyota Motor Corporation reconfirms commitment to carbon neutrality by 2050, with a focus on multi-technology solutions for all customers – irrespective of market, country or region
• Toyota Motor Europe confirms approach for Europe and increases its sales forecast for 2025

Toyota Motor Corporation (TMC) today announced its financial results for the fiscal year ended March 31, 2021. It also outlined its approach to achieving carbon neutrality by 2050 through an inclusive, multi-technology approach that ensures no customer is left behind.

Despite the COVID-19 pandemic, Toyota’s global vehicle sales totalled 7,646,000 units, a decrease of 1,309,000 units compared to the previous fiscal year. On a consolidated basis, net revenues for the period totalled 27,214.5 billion yen, a decrease of 2,651.9 billion yen. Operating income decreased from 2,399.2 billion yen to 2,197.7 billion yen, while income before income taxes was 2,932.3 billion yen. Net income increased from 2,036.1 billion yen 2,245.2 billion yen.

Commenting on the results, Kenta Kon, Chief Financial Officer of TMC said “We were able to reduce costs and lower the break-even point by 2 million units since the Lehman Shock, through our efforts to make ever-better cars.”

Accelerating to Carbon Neutrality Whilst Ensuring No Customers Are Left Behind

James Kuffner, Chief Digital Officer of TMC explained Toyota’s strategy for carbon neutrality “Toyota is fully committed to the goal of achieving carbon neutrality globally by 2050, and will continue to invest in multiple low-carbon technology and innovation solutions to ensure that we meet the needs of our customers in each country and region”

Toyota is committed to carbon neutrality; for everybody – not only for selected groups or regions. For the automotive industry, carbon neutrality means achieving zero CO2 emissions in all processes throughout the lifecycle of manufacturing, transporting, operating, fuelling or charging, and recycling or disposing of vehicles.

Some people believe that concentrating resources on only one solution will achieve the goal of carbon neutrality faster. However, Toyota believes that investing carefully in multiple technologies will be a quicker and more inclusive way to achieve carbon neutrality around the world.

Ongoing Investment in Low Carbon Products and Technologies

Creating low emissions electrified solutions for the masses is part of Toyota’s DNA. As of today, Toyota has sold over 17m electrified vehicles worldwide – including, in 2020, nearly 2m vehicles.

Toyota now has 55 practical, reliable and affordable electrified vehicles in its portfolio, which allows it to meet the needs of its customers worldwide whilst striving to deliver the optimal technology to minimise carbon emissions in each case.

This approach will continue at speed, with Toyota further expanding its global electrified portfolio to 70 products, including 15 battery-electric vehicles, by 2025.

To ensure these products are the most accessible and efficient they can be, Toyota will continue to make significant investments in new battery technologies, such as solid state, and ever more efficient electric motors and improved power electronics.

Further Leveraging Hydrogen Fuel Cell Technology Towards Wider Carbon Neutrality

At the same time, Toyota will continue to invest strongly in its world-leading fuel cell technology. Toyota believes fuel cell technology can help to clean up a large percentage of the world’s entire transportation ecosystem. For instance, it can help to achieve carbon neutrality in trucks and heavy transport, trains, buses, taxis, aviation, shipping and industrial processes.

There is growing awareness of the significant environmental potential of hydrogen and Toyota is seeing increased interest in its fuel cell technology from a wide group of industries and markets.

Achieving Carbon Neutrality with Internal Combustion Engines

It is estimated that there are more than 1.4 billion vehicles in the world today, and most of them have internal combustion engines. As part of its strategy to achieve carbon neutrality faster, Toyota is exploring and testing possible ways to further minimise their carbon emissions.

Hydrogen fuel, as well as other new renewable e-fuel alternatives made from hydrogen and biofuel, could help minimise the carbon emissions of the world’s existing fleet of vehicles.

And, if that is realised, not only could the existing infrastructure be usable, but all vehicles including those already sold and in use may be able to significantly reduce their overall carbon emissions.

Commitment to Achieving Carbon Neutrality with No Customer Left Behind

Toyota is committed to achieving carbon neutrality by 2050 and firmly believes that multiple technology solutions are necessary to get there faster. Thus, Toyota believes it is better to maintain an open regulatory framework towards carbon-neutrality and not limit possible technology solutions too early.

This will allow companies and societies to work together with all available technologies to achieve the best and fastest results towards carbon neutrality – using whichever solutions and infrastructures suit their local needs best.

No single company or country can accomplish the goal of carbon neutrality alone. All industries must work together to develop new technology and infrastructure in co-operation with scientists and academia, as well as local and national governments.

Toyota would like to maintain its position as a trusted partner to build products and solutions suitable for each country’s citizens to help societies around the world achieve carbon neutrality faster, whilst ensuring that no customer gets left behind.

Toyota Motor Europe raises sales forecast and plans 90 per cent electrification mix for 2025

Toyota Motor Europe achieved vehicle sales of 1.009m units for the fiscal year ended March 31, 2021.

Matt Harrison, President and CEO of Toyota Motor Europe, said “Our wide portfolio of accessible electrified products and our trusted partnerships have given us strong resilience in these challenging times. Whereas the market was down by -14 per cent, our sales reduced by only -7per cent, leading to our highest ever market share in Europe. Looking forward, we will continue to expand our electrified line-up towards ensuring that no customer is left behind on the journey to carbon neutrality. Our confidence in this approach is reflected in an increased sales and market share projection for 2025.”

No Customer Left Behind on The Journey to Carbon Neutrality in Europe

Toyota believes it has a responsibility to ensure that each and every customer has the opportunity to choose the lowest-possible CO2 product on the journey to carbon neutrality – irrespective of market, segment and budget.

Industry forecasts predict that in the next 10 years over 200 million new cars will be sold in Europe.

Within the 200 million, it is anticipated that around 45 million will be zero-emissions products.

Consequently, whilst Toyota is working hard on democratising zero-emissions vehicles to give the best chances to increase the ZEV volume beyond the forecasted 45 million units, it is also actively working on minimizing CO2 emissions for the other 155 million vehicles expected to be sold.

Increased Growth Projected for Toyota’s Business in Europe

This multi-dimension approach to electrification and CO2 reduction in Europe is having positive effects. Toyota is leading the industry in terms of overall CO2 reduction and, at the same time, it is growing its presence in the European market.

Today, in Europe, more customers than ever are choosing Toyota for their low emission solutions. Toyota is seeing increased conquest with its electrified products in core segments, and it is attracting more customers in segments and markets where other brands have withdrawn their products.

Toyota expects this positive trend to continue in Europe as it increases its portfolio of electrified products to meet the lower-emissions needs of all customers – with nobody left behind.

By 2025 Toyota will offer more than 55 electrified products in Europe, including at least 10 zero-emission vehicles. As a result, Toyota is today announcing an increase to its 2025 sales and share ambition in Europe – rising to 1.5m units, which represents more than 7per cent of the market.

By then, at least 150,000 (10 per cent) will be zero-emissions vehicles – both battery electric and fuel-cell electric. And at least another 1.2m (80 per cent) will be hybrid or plug-in hybrid, leading to an overall minimum 90 per cent electrified mix in 2025.

ENDS