Toyota’s UK profit almost wiped out amid ZEV mandate battle
Toyota’s UK profit has almost been wiped out as the carmaker battled a decline in market share and compliance with the ZEV [Zero Emission Vehicle] mandate.
The Surrey-headquartered division has posted a pre-tax profit of £462,000 for the 12 months to 31 March, 2025, down from the £11.5m it achieved in the prior year.
New accounts filled with Companies House also show Toyota’s revenue fell from £3.5bn to £3.3bn over the same period.
Toyota’s revenue from the sale of new vehicles declined in the year from £2.9bn to £2.7bn while its earnings from used cars edged up from £129.6m to £151.7m.
The car maker’s market share fell from 6.5 per cent to 5.8 per cent in 2024 and further declined to 5.4 per cent in the months to March 2025.
Toyota said 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, Morning Wire reported that Toyota’s financial services arm’s revenue increased in the year from £941.7m to £1.1bn while its pre-tax profit also rose from £148.8m to £196.5m.
Toyota: ‘Industry hit by ZEV and economy’
Toyota said 2024 saw an increase in the overall UK automotive market registrations of 2.7 per cent to 2.3m vehicles compared to 2023.
But the company added this was”driven solely” by the fleet market which saw growth of 11 per cent while the retail market fell by 8.4 per cent.
The premium car market, in which Lexus operates, increased by 5.1 per cent but Toyota said this was “again given by fleet”.
The group added that for the start of 2025, there has been an increase of 3.9 per cent in the overall market compared to 2024 with fleet up 2.8 per cent and retail up 5.5 per cent.
A statement signed off by the board said: “The company’s new car volume is reliant in part upon the overall health of the UK car market, which the company monitors closely together with other economic factors which may influence the overall demand for new cars in the UK.
“Whilst some economic conditions of the recent years have eased, there remains pressures on households disposable income, affecting overall market demand.”
Toyota added: “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.”