Core Viewpoint - Despite the heavy burden of U.S. auto tariffs, Toyota's balanced development and sales strategy in major regions like China and Europe has proven effective. However, risks remain in semiconductor and rare earth procurement [1][12]. Financial Forecast - For the fiscal year ending March 2026, Toyota forecasts a consolidated net profit of 2.93 trillion yen, a 39% year-on-year decline, which is an upward revision from the previous estimate of 2.66 trillion yen (44% decline) [1]. - Sales are expected to grow by 2% to 49 trillion yen, while operating profit is projected to decrease by 29% to 3.4 trillion yen, with upward adjustments of 500 billion yen and 200 billion yen respectively [3]. Regional Performance - Toyota's sales strategy has led to a balanced revenue structure across regions, with North America accounting for only 28% of total sales, lower than competitors like General Motors (56%) and Honda (47%) [8]. - In North America, local production increases have supported the launch of models like the Tundra and Tacoma, tailored to local demand [8]. - Sales in India increased by 14% to 160,000 units, while sales in Indonesia decreased by 18% to 120,000 units, with other regions providing effective support [8]. Production and Efficiency - The introduction of the Toyota New Global Architecture (TNGA) has improved production efficiency, reducing equipment investment and development time by 25% and vehicle costs by 10% compared to pre-TNGA levels [11]. - For the first half of the fiscal year, Toyota reported a 6% increase in sales to 24.63 trillion yen, with a 7% decline in net profit to 1.77 trillion yen, and a global sales increase of 5% to 5.26 million units, marking a historical high [11]. Supply Chain Risks - The automotive supply chain faces increased disruption risks amid U.S.-China tensions, particularly concerning semiconductor shortages, which are critical for production [12]. - The CFO expressed awareness of potential risks from U.S. economic policies, despite currently not seeing direct impacts [13]. Investment and Future Strategy - Toyota plans to continue significant investments in the U.S., with a recent announcement of an additional $88 million investment in a West Virginia plant, indicating a commitment to local production [14]. - The company is also focusing on software-defined vehicles (SDVs) and must prioritize advancements in autonomous driving technology to remain competitive [14].