Toyota Forecasts Record Profit Thanks to Gas-Electric Vehicles as US Competitors Try to Catch Up. Gas-Electric Vehicles Leave Dealers in the US Fast as Hot Cakes, Granting the Hybrid Car Monarch, Toyota Motor, a Strong Profit.

On Tuesday, Toyota forecasted a record net profit of 30.3 billion US dollars for the fiscal year ending in March due to increased sales of hybrid vehicles in all key markets. The results caused Toyota shares in Tokyo to rise by 4.8% and reach an all-time high.

The sales of hybrids increased faster than those of pure electric vehicles last year in the USA and some other markets. There are indications that the adoption of electric vehicles may have been too rapid for American consumers, who are worried about charging issues and higher prices. Therefore, they prefer to opt for cheaper hybrids that can be refueled with gasoline.

Car Manufacturers Focusing on Transitioning to Fully Electric Vehicles Reconsider Their Strategy Now. General Motors Announced Last Week That It Will Introduce Some Models with Plug-in Hybrid Drivetrains in North America Following Pressure from Dealers.

Ford Motor said last year that it plans to quadruple its hybrid sales over the next five years. "Hybrids will play an increasingly important role in our industry sector in the transition and will exist in the long run," said Ford CEO Jim Farley during the earnings call on Tuesday.

His statements come at a time when Ford expects larger losses for its electric vehicle business this year and is re-evaluating its plans for this technology.

Toyota, which introduced hybrid cars at the end of the 1990s, is currently enjoying its role as market leader and the associated profits. Sales of hybrid vehicles "exceeded expectations" and were also successful in China, the largest market for electric vehicles, said Toyota Vice President Yoichi Miyazaki.

"As a realistic solution, hybrids are still popular with our customers," Miyazaki added on Tuesday. In the nine months to December, Toyota saw the largest growth in North America, with sales volume increasing by 17% compared to the same period last year.

In the USA, demand for hybrids far exceeds production capacity, leading to low inventory levels at dealerships, according to Miyazaki. According to data from the auto-shopping website Edmunds, about 1.4 million hybrid and plug-in hybrid vehicles were sold last year in the USA, compared to 1.1 million EVs.

The sales of hybrids increased by 63% compared to the previous year, while the sales of EVs increased by 51%. Executives of Japanese car manufacturers that are strong in hybrids, including Toyota and Honda, express skepticism about the competition's ability to catch up quickly.

They find that it took Japanese automakers about two decades to bring their hybrids to the same profitability level as pure gasoline vehicles. However, Japanese brands are lagging behind in pure electric vehicles.

In the nine months until December, Toyota sold 2.7 million hybrid vehicles with its luxury brand Lexus, which accounted for 34.7% of total sales. Electric vehicles made up about 1% of Toyota and Lexus vehicle sales.

The recent market conditions have apparently strengthened Toyota's resolve to continue betting on hybrids. In a speech to business leaders in Japan this year, Toyota Chairman Akio Toyoda said he expected that EVs would achieve a market share of at most 30% in the future, with the remainder going to other types of cars such as hybrids and hydrogen-powered vehicles.

Toyota once again the world's largest automaker by vehicle sales in 2023. Last year, 11.2 million vehicles were sold worldwide, including some affiliated brands, compared to around 9.2 million for Volkswagen, the second-largest automaker.

2023 Toyota Sold About 3.4 Million Hybrid Vehicles, Compared to 2.6 Million the Previous Year. According to Toyota Manager Miyazaki, This Number is Expected to Rise to Five Million by Around 2025. "Hybrids are Recognized as a Realistic Solution for Achieving Climate Neutrality," He Said.