Impact of COVID-19 pandemic on Toyota projects, car sales drop, so the 80% fall in annual operating profits.

Toyota Company expects to operating profit of 500 billion yen ($ 4.66 billion) in the year to March, 2021, but it down 80% from 2.44 trillion yen in the year just ended.

On Tuesday, May 12, 2020, Toyota Motor Corporation said that it has to announce its lowest annual operating profit in the nine years. Impact of Coronavirus , that the automaker struggling for their work and it reduces the global demand for cars. Toyota, Japan’s biggest automaker said that it expects to operating profit of 500 billion yen ($4.66 billion) in the year to March, 2021, but it downs 80% from 2.44 trillion yen in the year just ended as a financial year till March. And that would be Toyota’s weakest profit since the 2011/2012 financial year.

Now, the car sales reduces because, the COVID-19 pandemic, it restrict the people to travel and it also encourage the people to stay at their home. Car comes under non-essential items and it may hold people back from spending on cars and the other reason, the financially critical situation for the non-essential items businesses person and the country’s also faces the same, the economy falls. So, everyone spend their money only on essential items. And the results, the cars sales falls in this year compare than other.

COVID-19 pandemic as containment measures such as restriction on public movement and his encouraged the drivers or people to hold off from vehicle purchases and also forcing businesses to shutter product plants.

Demand for new vehicles is globally drop, since March it has already reduces the global sales at Japanese automakers and the annual sales at Toyota falling 1.4% from a year earlier.

For restart the automakers operations at worldwide but the demands for the new vehicles are reduced, procurement issues and due to COVID-19 pandemic the social distancing is most important and by these measures limits the output in the coming months. As a result some analysts see a cut in annual global vehicle sales by around a third, compared with an 11% fall in 2009/10 after the global financial crises.