Toyota's º£½ÇÊÓƵ profit has been virtually eliminated as the manufacturer grappled with declining market share and adherence to the ZEV [Zero Emission Vehicle] mandate.
The Surrey-based division reported a pre-tax profit of just £462,000 for the 12 months to 31 March, 2025, plummeting from the £11.5m achieved in the previous year, as reported by .
Fresh accounts lodged with Companies House also reveal Toyota's turnover dropped from £3.5bn to £3.3bn during the same timeframe.
Toyota's income from new vehicle sales decreased over the year from £2.9bn to £2.7bn whilst its revenue from second-hand cars climbed from £129.6m to £151.7m.
The manufacturer's market share slipped from 6.5 per cent to 5.8 per cent in 2024 and continued falling to 5.4 per cent in the months leading to March 2025.
Toyota stated this was "in line with expectations as the company manages which fleet channels it chooses to operate in and also its compliance with the ZEV [Zero Emission Vehicle] mandate".
In June, City AM reported that Toyota's financial services division's turnover grew during the year from £941.7m to £1.1bn whilst its pre-tax profit also increased from £148.8m to £196.5m.
Toyota: 'Industry hit by ZEV and economy'
Toyota noted that 2024 witnessed a rise in overall º£½ÇÊÓƵ automotive market registrations of 2.7 per cent to 2.3m vehicles compared to 2023.
However, the firm emphasised this was "driven solely" by the fleet sector which experienced growth of 11 per cent whilst the retail market contracted by 8.4 per cent. The premium car segment, where Lexus competes, grew by 5.1 per cent, though Toyota noted this was "again given by fleet".
The group reported that early 2025 has witnessed a 3.9 per cent rise in the overall market versus 2024, with fleet sales climbing 2.8 per cent and retail advancing 5.5 per cent.
A board statement declared: "The company's new car volume is reliant in part upon the overall health of the º£½ÇÊÓƵ car market, which the company monitors closely together with other economic factors which may influence the overall demand for new cars in the º£½ÇÊÓƵ.
"Whilst some economic conditions of the recent years have eased, there remains pressures on households disposable income, affecting overall market demand."
Toyota further stated: "We consider the overall automotive market will remain at similar levels during 2025 compared to 2024 as the industry continues to be impacted by current economic conditions and the ZEV mandate.
"The company will launch additional BEVs [Battery Electric Vehicle] in the next financial year, including the all-new Urban Cruiser."
