Toyota's UK Profit Down Amid Decline in Market Share and ZEV Mandate Compliance

Toyota's UK profit has fallen to £462,000, down from £11.5m in the previous year, due to declining market share and compliance with the ZEV mandate. Revenue dropped from £3.5bn to £3.3bn, and new vehicle sales declined from £2.9bn to £2.7bn. The carmaker's market share fell from 6.5% to 5.4%. Toyota attributes the decline to economic conditions and the ZEV mandate, expecting the market to remain stable in 2025.

Toyota UK's financial performance has taken a significant hit, with the company reporting a pre-tax profit of £462,000 for the 12 months to 31 March 2025, a stark decline from £11.5 million in the previous year Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1]. This substantial drop can be attributed to a combination of declining market share and the stringent Zero Emission Vehicle (ZEV) mandate.

The carmaker's market share has decreased from 6.5% in 2024 to 5.4% in the months leading up to March 2025 Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1]. This decline is mirrored in the company's turnover, which fell from £3.5 billion to £3.3 billion during the same period. Revenue from new vehicle sales also dropped from £2.9 billion to £2.7 billion, while sales from second-hand cars climbed from £129.6 million to £151.7 million Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1].

Toyota UK has attributed the decline to economic conditions and the ZEV mandate, stating that it expects the market to remain stable in 2025 Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1]. The company noted that the overall UK automotive market registrations increased by 2.7% in 2024, driven primarily by the fleet sector, which grew by 11%, while the retail market contracted by 8.4% Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1].

In response to the challenges, Toyota is planning to launch additional Battery Electric Vehicles (BEVs) in the next financial year, including the all-new Urban Cruiser Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1]. Additionally, the company has announced plans to commence production of two new battery-powered SUVs at its Kentucky facility in the US, aiming to enhance manufacturing efficiency and cater to evolving market demands Toyota to initiate electric SUV production at Kentucky plant in US – report^[2].

Despite these challenges, Toyota's financial services division saw an increase in turnover from £941.7 million to £1.1 billion, with pre-tax profit growing from £148.8 million to £196.5 million Toyota UK profit crashes 96% as carmaker hit by ZEV mandate and economic woes^[1]. The company has emphasized its commitment to reviewing production structures to enhance vehicle quality and adapt to market conditions.