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Toyota's UK Profit Down Amid Decline in Market Share and ZEV Mandate Compliance
ByAinvest
Friday, Sep 12, 2025 1:06 pm ET1min read
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 [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 [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 [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 [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% [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 [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 [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 [1]. The company has emphasized its commitment to reviewing production structures to enhance vehicle quality and adapt to market conditions.
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