TOKYO — Toyota Motor on Wednesday reported a net profit of 897.8 billion yen ($8.2 billion) for the April-June period, a record amount for the quarter, thanks to robust sales in North America and China that exceeded pre-pandemic levels.
Toyota, however, kept its full-year net profit forecast for the year through March 2022 at 2.3 trillion yen as it anticipates rising raw material costs and other headwinds.
Quarterly revenue stood at 7.935 trillion yen, while operating income was 997.4 billion yen.
Toyota sold 5 million vehicles during the first six months of this year, up 32.7% from the same period last year and a 4.5% increase from 2019, driven primarily by sales in the U.S. and China.
The Highlander and other light trucks as well as the Camry and other sedans have been well received by North American buyers. In China, the Corolla and Lexus models are experiencing increased sales.
The U.S.’s speedy vaccination rollout and China’s success in containing the virus have helped boost demand for new vehicles.
The robust sales are expected to absorb some of the negative impact that the Japanese auto giant is currently experiencing. Tougher auto emissions standards in China and other big markets are driving increased demand for rare metals like rhodium, used in catalytic converters, which control emissions. As a result, prices are soaring.
Prices are also on the rise for lithium and other crucial battery materials as well as for the steel, aluminum and plastic that go into conventional auto parts.
In Southeast Asia, the delta variant has become a big concern in the fight against the coronavirus, which continues to disrupt the supply of auto parts. In Thailand, a regional production hub, Toyota has been gradually suspending production since late July as infections among parts maker employees hinder supplies.
Plants in Vietnam, Malaysia and Japan have also suffered suspensions.
Although Toyota was believed to have been mitigating the damage from the global semiconductor crunch thanks to its stockpiling practices, the company on Monday halted some lines at a domestic plant due to an undersupply of chips. The suspension will continue until Friday.