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Toyota

Transform into a mobility company, From April 2026

Transform into a mobility company
Toyota’s plan

Transform into a mobility company

Toyota sold a record 5.04 million electrified vehicles in the year to March 2026, nearly half of everything it sold, and most of them hybrids. It expects to sell 5.96 million in the year to March 2027 and to make less profit doing it. Toyota plans to keep making every kind of powertrain, cut the number of variants, and grow the businesses that earn from cars after they are sold.

Many powertrains

  1. HybridsKeep hybrids the largest part of electrified sales, with 5.07 million expected in the year to March 2027.
  2. Battery electricRaise battery electric sales from 243,000 to an expected 598,000, up 146%.
  3. Fewer variantsCut the number of vehicle types, because more types mean more parts and specifications.

Toyota sold 5.04 million electrified vehicles in the year to March 2026, 48.1% of retail sales.

4.62 million of them were hybrids, and 175,000 plug-in hybrids.

Battery electric sales rose 68.4% to 243,000.

Nearly half of Toyota’s sales are electrified

Toyota counts hybrids, plug-in hybrids, and battery electric cars as electrified. It expects the share to rise from 48.1% to 56.7% in a year, with both hybrids and battery electric cars selling more. Each thread is 1% of Toyota and Lexus retail sales.

Year to March 2026

Hybrid
4,620,000 vehicles
Plug-in hybrid
175,000 vehicles
Battery electric
243,000 vehicles
Electrified
48.1%

Toyota expects operating income to fall to ¥3.0 trillion

Toyota earned ¥3.77 trillion in operating income in the year to March 2026, ¥1.03 trillion less than the year before. For the year to March 2027 it forecasts revenue of ¥51 trillion and a higher dividend.

ActualYear to March 2026

¥3.77tn

Margin
7.4%
Dividend
¥95 a share

ForecastYear to March 2027

¥3.00tn

Margin
5.9%
Dividend
¥100 a share

  1. Let sales set the weight of each path.

    Toyota keeps hybrids, plug-in hybrids, and battery electric cars all on the plan, and lets what customers buy decide which grows fastest: hybrids are 4.62 million of its 5.04 million electrified sales, and battery electric sales are forecast to grow 146% from a small base. We recommend keeping more than one route to a goal while it is unclear which will win, and setting how much each is expected to carry.

  2. Put a price on breadth.

    Toyota’s president said that if the number of vehicle types keeps growing, the number of parts and specifications will also grow significantly. We recommend naming what each extra option costs, so cutting options can be a goal and not just a wish.

  3. A forecast can fall while the plan holds.

    Toyota forecasts operating income of ¥3.0 trillion for the year to March 2027, down from ¥3.77 trillion on slightly higher revenue, and keeps its goal of a 20% return on equity. We recommend separating this year’s result, which the environment can move, from the structural goal, which it should not.

Sources

  1. 1. Toyota Motor Corporation (2026). FY2026 financial results. Presentation documents as filed with the Tokyo Stock Exchange, 8 May 2026. sec.gov
  2. 2. Toyota Times (2026). Rapidly changing business environment: how will Toyota return to a growth trajectory? FY2026 financial results Q&A. Toyota Times, 18 May 2026. toyotatimes.jp

Headwater is not connected with Toyota Motor Corporation. Toyota, Lexus, Century, and Daihatsu are trade marks of their owners. Updated 28 September 2026.

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