Toyota has suffered first profit fall for the first time in half a decade.
The Japanese auto maker said it sold more cars in the year to March 2017 than in the previous 12 months but that higher costs and currency fluctuations hit results.
The profit of 1.83 trillion yen ($16.1 billion) was down 21% from 2016-2017.
Toyota has warned 2016 profits will be even lower, due to the strength of the Japanese currency.
Photo AP
The company’s prediction is based on a forecast that the yen will average around 105 to the US dollar in the year through to March 2018, compared with 108 yen in the last financial year.
Toyota, which has lost its top-selling carmaker status to Volkswagen, sold 10.25 million cars over the year, up from 10.19 million units a year earlier.
However, income from those sales was slightly down at 27.6 trillion yen.
Toyota has been struggling in the US, its biggest market. Sales fell in North America as the company battled to meet demand for bigger cars such as SUV’s, which have become more affordable to drive thanks to lower petrol prices.
Earlier this year Toyota said it would invest $10 billion in the US over the next five years.
The American carmakers reported strong sales figures for May 2014.
Chrysler said sales were up 17%, driven by its Jeep brand which saw sales jump 58% after it introduced new models.
GM reported a 12.6% rise in sales compared with the same period last year.
Ford posted a better-than-expected 3% increase in sales, helped by increasing demand for sports utility vehicles (SUVs) as well as its Fusion sedan.
The carmaker saw its truck sales drop 4% as it cut back on incentives in preparation for the launch of its new F-150 pick-up truck, which is the best-selling vehicle in North America.
The American carmakers reported strong sales figures for May 2014
Ford also said it was shutting down some truck plants for a total of 13 weeks in an effort to plan for the launch and manage inventory of the new truck, which features a lighter body for better fuel mileage.
May is traditionally a strong month for car sales in the US.
This May in particular was helped by an extra weekend, which saw particularly strong sales.
GM shares rose more than 3% on the news, before falling later in the day.
The company appears not to be suffering from a mishandled recall, which resulted in a $35 million fine for the company last month.
The National Highway Traffic Safety Administration Board (NHTSA) said it was the single highest civil penalty ever levied as a result of a recall investigation.
Foreign car makers also saw strong US sales, with Japanese car makers Toyota and Nissan reporting double-digit sales increases.
Of the major car manufacturers, only Volkswagen saw its sales fall.
Demand for Volkswagen vehicles slumped 15%, partially as a result of a pause before the launch of a new Golf compact car.
[youtube Bk9GMwQgyug 650]
