Toyota, Honda, and Nissan report profit growth driven by U.S. hybrid demand

Major Japanese automakers Toyota, Honda, and Nissan reported significant financial improvements in their first quarter of fiscal year 2027, driven largely by strong demand for hybrid vehicles in the United States and a weaker yen.

Toyota reported a net profit of 1.477 trillion yen, exceeding market expectations by approximately 51%. The company's growth was supported by its hybrid vehicle segment, with Toyota and Lexus hybrid sales reaching 1.238 million units. Consequently, Toyota raised its full-year sales and profit forecasts.

Honda saw a substantial increase in net profit, reaching 450.9 billion yen, more than double the previous expectations. This performance was attributed to expanding North American sales and the depreciation of the yen. Honda also upgraded its full-year earnings guidance.

Nissan successfully returned to quarterly profitability through its "Re:Nissan" restructuring and cost-cutting initiatives, which saved approximately 60 billion yen. While Nissan saw a 10% increase in U.S. sales, the company lowered its full-year global volume forecast due to a slowdown in the Chinese market.