By: Azhar Azam
Consolidated vehicle sale of Toyota Motor Corporation (TMC) wheels to 8.97 million units for the FY2017 ended March 31, 2017; a rise of 289,532 units from the last year, the company announced this month.
- Net revenues dwindled by 805.9 billion yen (-2.8%); to 27,597.1 billion yen
- Operating income sliced by 859.5 billion yen (-30.1%); to 1,994.3 billion yen
- Net income plummeted by 481.5 billion yen (-20.8%); to 1,831.1 billion yen
Japan – vehicle sale increased by 214,869 units, to 2.3 million. Operating income declined by 470.7 billion yen, to 1.2 billion yen
North America – vehicle sale fortified by marginal 1,895 unites, to 2.8 million units. Operating income shrank by 174.7 billion yen, to 330.9 billion yen
Europe – vehicle sales increased by 80,148 units, to 924,560 units. Operating income decreased by 87.6 billion yen, to a loss of 11.8 billion yen.
Asia – vehicle sales aroused by 242,986 units, to 1.6 million units. Operating income fell by 30.5 billion yen, to 424.4 billion yen
*Other regions – vehicle sales tumbles by 246,576 units, to 1.4 million units. Operating income floored by 39.9 billion yen, to 63.4 billion yen
*Central and South America, Oceana, Africa and the Middle East
North America continued to emerge as the strongest market for TMC which contributed to 31.6% of total Toyota vehicle sales. At home, the largest auto maker sold 25.3% of total vehicle sales and Asia followed with a share of 17.7%.
Giant car maker went through a disastrous year even domestically as despite an increase in sale of 214,869 units; the company’s operating income weakened by 39.0%. TMC also condensed its financial services operating income by 116.7 billion yen to 222.4 billion yen, including a loss of 15.8 billion yen in valuation gains/losses from interest rate swaps.
The financial cataclysm eventually drove company to forecast consolidated net revenue of 27.5 trillion yen, operating income of 1.6 trillion yen, and net income of 1.5 trillion yen for the fiscal year ending March 31, 2018. The only heartwarming factor TMC could pull out from this atrocious phase is the increase in sale by 289,532 units, to 8,970,860 units for the tear.
“Excluding the overall impact of foreign exchange rates and swap valuation gains and losses, operating income improved by 120 billion yen year-over-year, as a result of profit improvement activities throughout the year.” Said Osamu Nagata, Vice President TMC.
In CY2016, TMC produced a total of 10.2 million units (passenger cars and trucks and buses) worldwide under its brands Toyota (8,973,988 units), Daihatsu (1,061,373 units), and Hino (178,125 units). Its worldwide sale for the same year was 10.175 million, out of which 7.943 million units were sold outside Japan.
All TMC brands witnessed decreased exports in CY2016 due to lack of demand across the regions. Conversely, in terms of production, Toyota reported fifth-consecutive year of increase, Daihatsu first in two years, and Hino second-consecutive year of increase.
Established in 1937, Toyota Motor Corporation (TMC) is one of the world’s largest vehicle manufacturers with a capital of 635-billion yen (as of March 31, 2016) and employee strength of 348,877 (as of March 31, 2016). It operates throughout the world with 50-overseas manufacturing companies in 26-countries and regions.
“Toyota leads the automobile industry in environmental technologies with the success of hybrid technology and in the Prius and Camry Hybrid. Fuel cell vehicles are also in development.”
Toyota Concedes Leadership Cap to Volkswagen
Toyota (10.2million units) finally conceded No.1 position to Volkswagen (10.3 million units) for the full-year 2016. German automaker, Volkswagen, had a mix year of commemoration and setbacks as besides reclaiming the leadership cap, it agreed “to plead guilty and pay $4.3 billion in Criminal and Civil Penalties” in the United States on cheat of emissions tests, according to a press release on January 11, 2017.
Earlier on June 28, 2016, Volkswagen pledged “to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers on 2.0 Liter Diesel vehicles” to United States Environmental Protection Agency (EPA).
Volkswagen manufactures vehicles under various legendary brands; such as Audi, Porsche, Skoda, Bentley, Buggati, SEAT, and Lamborghini. The company generated total sales revenue of €217.3 million for 2016; up from €213.3 billion in 2015.
Top-15 Motor Vehicle Manufacturing Companies – 2015
- Toyota (10.08 million)
- Volkswagen (9.9 million)
- Hyundai (8.0 million)
- GM (7.5 million)
- Ford (6.4 million)
- Nissan (5.2 million)
- Fiat (4.9 million)
- Honda (4.5 million)
- Suzuki (3.0 million)
- Renault (3.0 million)
- PSA (3.0 million)
- BMW (2.3 million)
- Saic (2.3 million)
- Daimler AG (2.1 million)
- Mazda (1.5 million)
Cars Production by Country – 2016
A total of 95.0 million vehicles have been produced in 2016 throughout the world including Cars (72.1 million units) and Commercial Vehicles (22.9 million units); an increase of 4.1 million units (4.5%). Top-10 countries with largest cars production and their market share in 2016 areas follows, based on OICA statistics:
- China (24.4 million; 33.9%)
- Japan (7.9 million; 10.9%)
- Germany (5.7 million; 8.0%)
- United States (3.9 million; 5.5%)
- South Korea (3.9 million; 5.4%)
- India (3.7 million; 5.1%)
- Spain (2.4 million; 3.3%)
- Mexico (2.0 million; 2.8%)
- Brazil (1.8 million; 2.5%)
- United Kingdom (1.7 million; 2.4%)
Pakistan produced a total of 159,826 cars at a growth rate of 4.8% in the first eight months (July to April) of FY2017 against production of 152,531 cars for the same period last year; according to Pakistan Automotive Manufacturers Association (PAMA). Car sale also grew for the period by 2.4%; from 152,229 units to 155,960 units during the same eight months period.
In 1,300 cc and above category, Pakistan produced 80,639 cars during July-April 2017 whereas 80,668 cars have been sold during the same period. Toyota Corolla (45,534 units), Honda City/Civic (31,564 units), and Suzuki Swift (3,541 units) have been the key players with market share of 56.5%, 39.1%, and 4.4% respectively.
In 1,000 cc category, Suzuki Cultus and Suzuki WagonR produced 14,997 units (Sale 13,226 units) and 14,453 units (Sale 14,079 units) respectively. In 800 cc and below 1,000 cc category, Suzuki Mehran production remained 32,929 units; against sale of 31,867 units. Suzuki Bolan produced 16,808 units and sold 16,119 units for the period.