Auto manufacturers all over the globe are working on the advancements of eco-technology. Toyota has invested a fair bit in this segment visible on Prius and Camry hybrids. The development of environmentally friendly cars is a hot research topic, but nothing major is visible at the moment.
Toyota Logo
Car companies are foreseeing a future where every second vehicle will be an electric, hybrid and hydrogen gas fuelled vehicle. It will take time to review the extent of progression of technology. Toyota Motor Corp is eyeing the green car market, its vision is to push the technology forward, and it has invested billions of dollars to develop fuel-cell vehicles and gasoline-electric hybrids.
Despite the massive investment in green car market, majority of its profits come from conventional gasoline vehicles. The gasoline market in US is a profitable sector; gasoline vehicles have contributed steep 9% growth in light truck segment during the initial six months of 2014 and are among the highest profit bearer in the segment. Toyota’s dominant position in US market happened on the back of impressive profits generated from Highlander SUV and Tundra pick-up. The two cars contributed a fierce 10% gain in the January to June period.
Toyota has kept aside investments to fuel green car growth; the revenue holding is whooping $40 million. The company has made admirable profits in US, so much more than attractive Asian markets of Thailand and Japan. This point was confirmed by an auto analyst at Mitsubishi UFJ Morgan Stanley, Koichi Sugimoto. The light truck market alone is an immensely profitable sector for Toyota; it alone has yielded 42% sales in the January to June period, which is a 5% gain from a year ago.
Toyota power in US auto sector was visible in July, when the firm noted a 12% gain, mainly because of spark discounts and demand for SUV vehicles. The profit outcome of Toyota is higher than the earnings of the industry which stood at 9%. Toyota is now the second most profitable firm in US, and has taken away the second spot of Ford Motor Co. The 12% growth is not inclusive of imports, the Japanese headquartered unit takes credit for export profits. The company could not make sufficient export revenues during the April-June period because of the expensive sales tax regulation.
Toyota Japan is not predicted to head to profits anytime soon; an analyst from Barclays Yoshida predicts a 381 billion yen revenue holding, a 16% drop. The expected decline in Asian markets is 92 billion yen, a 12% dip. Toyota has formatted a plan for the financial year, and the desirable operating outcome is $2,500 for light trucks such as Tundra or RAV4 in US. The profit capacity of Camry and Prius is $1,500; Prius hybrid the best selling hybrid car in US noted a 11% sale dip during the first six months of the year.
The adverse macro-economy has taken a toll on global auto profits; there is very little room for enormous investments. Toyota has maintained bulk amounts to promote the power of green cars; it is still a long way off before the technology meets the robustness of conventional fuels.
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