Despite the “negative impact of US tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts”, the firm said in a statement.

For the year ending March 2026, it expects to see net profit of ¥3.57 trillion (US$22.8 billion), up from ¥2.93 trillion. Operating profit is forecast to hit ¥3.8 trillion, up from ¥3.4 trillion.

Sales are expected to hit ¥50 trillion, compared with ¥49 million.

However, Toyota said the September-December quarter saw net and operating profit fall, despite a rise in sales, largely because of a “tariff impact” that increased expenses.

The firm announced last month that global sales hit a new record in 2025, despite trade tensions, helping it retain its title as the world’s top automaker and widen the gap with German rival Volkswagen.

The overall increase came despite flat sales in China, a crucial market where Toyota faces intensifying competition from local automakers including electric-car champion BYD.

US sales climbed 8% despite the 25% tariff on Japanese auto exports imposed by Washington between April and mid-September, when a 15% cap kicked in.