Toyota Reports First Profit Drop in Two Years

Following Donald Trump's election win, Toyota executives express confidence that investments in electric vehicles (EVs) and battery production will continue to materialize, despite a challenging market and declining profits. Toyota reported a 20% drop in second-quarter operating profit, marking its first quarterly decline in two years, and a 55% plunge in net profit, as sales volume decreased from 2.42 million to 2.3 million units. To maintain profitability amid these struggles, Toyota plans to withhold future EV investments until market demand stabilizes, emphasizing a cautious approach to electrification. The company is also facing quality control issues, including significant recalls that have impacted production. Despite the setbacks, Toyota is still advancing new technologies, such as solid-state batteries, while trying to stabilize its market position against fierce competition from domestic Chinese automakers. Moving forward, Toyota aims to increase its responsiveness to market changes while maintaining its investment strategy for future growth.