Auto giant Toyota said on November 5, 2012, that it has hiked its full year profit forecast. The company has increased its profit target despite its earlier statement that it expects to sell fewer cars due to weakening business in Europe and slumping profits in China, due to the territorial row.
Toyota is considered to be China’s largest auto maker, which is now expecting to earn 780 billion yen in the financial year up to March 2013, which would be up from 760 billion yen. The company has also said that sales would be 21.3 trillion yen, which has come down from an earlier target of 22 trillion yen.
The higher earning expectations are due to a strong yen and uncertainty in China and Europe, mostly caused due to cost cutting, research and development expenses and a decrease in labor. The company also said that it has been aided by stronger Asian sales and increased business in the North American market.
However, there were also a few obstacles like a high yen, anti-Japanese sentiments in China and the struggling European economy. Satoshi Ozawa, the executive vice president at Toyota said, “We lowered sales forecasts as the Chinese and European market environment turn increasingly murky”. Toyota now expects to sell 8.75 million vehicles globally in the current financial year.
