Toyota’s withdrawal from the Russian market after the invasion of Ukraine has damage quantity and profitability within the Europe area, Harrison mentioned.
Harrison mentioned that Toyota and Lexus bought 119,178 models in Russia in 2021 – of which 80,792 had been regionally produced. The amount misplaced in Russia this 12 months is about 100,000 models, or about 10 p.c of gross sales in its European area.
Harrison mentioned that the load of Russia on Toyota Europe profitability was a lot larger than 10 p.c of quantity misplaced, as a result of it sells higher-value automobiles there.
Whereas the Toyota vary in Western Europe begins with the Aygo X and Yaris small automobiles, in Russia the smallest Toyota is the Camry midsize sedan (not provided in Western Europe). On the similar time, the majority of Lexus gross sales in Russia are GX and LX giant fashions, that are larger than the RX that tops the vary in Western Europe.
The mixed results of primarily zero gross sales in Russia since final spring and better manufacturing prices have had a big impact on Toyota Europe’s earnings, Harrison mentioned.
Within the six months from April to September 2022 – Toyota’s first two fiscal quarters – the Europe area swung to an working lack of 53.5 billion yen (about 375 million euros) from a revenue of 52.9 billion yen in the identical interval the 12 months earlier than.
Toyota would have been worthwhile and not using a one-time price of 96.9 billion yen (round 680 million euros) from closing its manufacturing facility in St. Petersburg, Russia.
Unit gross sales declined by 6.1 p.c to 479,000 models in April-September 2022 from 510,000 in the identical interval the 12 months earlier than, firm figures present.
Harrison mentioned that Toyota is “fastidiously watching” total gross sales in its European area. He mentioned he doesn’t anticipate it to return to a pre-pandemic quantity of greater than 20 million annual gross sales till no less than 2025.