Asia’s biggest carmaker, Toyota Motor Corp is emerging with full force from the Tsunami and flood disasters of last year and has already defeated General Motors Co with its five-year high profit figures. The net income of the fiscal year that ends in March 2013 is expected to increase three times to 817.7 billion yen which is approx 10 billion USD which is more than the estimated profit of GM over the next four quarters.For the President of the company Akio Toyoda, this year could be the first year since 2009 which is expected to go crisis free as Toyota is eyeing good market share from Prius hybrids, Corolla compacts and Lexus sedans.
Akio Toyoda is the grandson of the founder of the company and took the position of President in 2009. Even when the production has stabilized now Toyota is facing tough competition in terms of global sales from the General Motors, Volkswagen AG and Hyundai Motor Co. This year the shares of Toyota have gained 22 percent exceeding those of Nissan Motor Co, Honda Motor Co and General Motors. The stock of the company has also recuperated more than 50 percent of the losses that occurred because of the last year’s rampant Tsunami in the northeastern part of Japan. For the current year that ends in March 2013, the company may have forecasted that the sales would shoot up by 12 percent to 20.8 trillion yen.
Last week General Motors incurred a net loss of $1.32 billion i.e. 61 percent fall in the net income. The profit in the first quarter for Volkswagen has doubled to 3.17 billion euros which is approx $4.1 billion USD. The fourth quarter for Toyota was not of much help and the total income of the company fell down by 33 percent to 272.9 billion yen on account of disruptions in the auto production which were a result of natural disaster in Japan and Thailand. These disasters followed the crisis Toyota faced in 2009 and 2010 because of the huge recall process to fix the unintended acceleration in 10 million vehicles.
Toyota Motors is eyeing to rise back to its original position of numero uno car maker of the world, the company lost this title to General Motors in 2011 post the unfortunate stoke of nature. The company however is witnessing an upward graph in terms of sales which is pretty evident from the fact that Toyota has sold 57 percent more passenger vehicles in the period from January to April 2012. This increase in sales is driven by the hybrid models of Toyota Prius and this comes as good news for the car manufacturer who sells two out of every five cars in Toyota. The U.S. market has also witnessed a good demand of Toyota products as the deliveries have increased by 12 percent in this year outshining other big players like General Motors, Ford, Honda and Nissan. Driving sales in the US market are the hybrids of the Prius family and the Camry sedan and the customers as well were benefited by better and more-fuel efficient model.
In the last quarter of the FY12 the sales in the markets of Europe and China saw a fall but this did not have very adverse impact on the company in terms of total sales as it is not as dependant on these markets as companies like PSA Peugeot Citroen and GM. Out of the 10 percent of the global market share of Toyota, the car markets of Europe and China account for 3.2 percent and 4.3 percent respectively. It has also been suggested by the auto experts that the recovery of shares in US would not be a big deal and once these are recovered Toyota should be concentrating more on finding ways to cope with the sales in China and other markets.
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