On Wednesday, the world’s leading automaker forecasted a 20% profit decline for the current financial year. This projection stems from anticipated investments in both suppliers and strategic initiatives following its remarkable fourth-quarter earnings.

Despite the subdued forecast, the company’s financial results exceeded market expectations. Operating profit soared by an impressive 78% during the January-March quarter. Notably, for the entire fiscal year, the company amassed a total operating profit of 5.35 trillion yen ($34.5 billion) – a historic milestone as the first Japanese company to surpass the 5 trillion yen mark, as reported by local media.

Toyota has experienced a dual advantage, benefiting from both a weaker yen and a shift in consumer preferences away from electric vehicles (EVs) in certain markets like the United States. Instead, customers are gravitating towards Toyota’s tried-and-tested petrol-electric hybrids, which have long been a stronghold for the Japanese automaker.

Criticism once aimed at Toyota for its “multi-pathway” strategy, which prioritizes hybrids and plug-in hybrids alongside EVs, now appears unfounded. This strategy is proving increasingly shrewd as consumer apprehensions about EV driving ranges and the accessibility of charging infrastructure persist.