Toyota targets 40% profit rise from services

Toyota Motor is targeting a roughly 40% increase in operating profit generated outside new-vehicle sales. The Japanese automaker aims to reach 3 trillion yen ($19.23 billion) from this segment by fiscal 2030.

This expansion focuses on what Toyota calls "value chain revenue." It encompasses software updates, leasing, sales financing, and parts sales tied to the approximately 150 million Toyota vehicles currently in use worldwide. The segment currently delivers an operating profit of around 2.1 trillion yen. The company plans annual increases of about 150 billion yen through to 2030.

Software and services strategy

Software-defined vehicles sit at the core of the plan. Toyota has already introduced a paid service allowing GR Yaris and GR Corolla owners to adjust vehicle functions through a smartphone app. This includes a cooling feature for the electronic control system.

Value chain revenue executive vice president Yoichi Miyazaki was quoted on the strategy. "We will maintain our current growth pace through increasing the number of vehicles in operation and expanding regionally and nationally," he said.

Parts and used vehicle expansion

Parts supply is also being scaled up. With a new warehouse now open in Belgium, Toyota supplies parts from 16 regional hubs across 50 countries. The company intends to strengthen its presence in Italy and eastern Europe, where vehicles average 15 years in service.

Used-car sales form a further strand of the strategy. Toyota aims to lift annual domestic used-car sales to 550,000 units by 2030. This is up from around 350,000 at present.

Financial context and scale

The 3 trillion yen target would account for roughly 80% of Toyota's consolidated operating profit for the year ended March. The company's global scale underpins the strategy. It sold 10.53 million vehicles in 2025, ahead of Volkswagen's 8.98 million and Hyundai Motor's 7.27 million.

Toyota recently reported strong quarterly results. It posted a 75.6% rise in net income to 1.47 trillion yen for the first quarter of its 2027 financial year. Consolidated sales revenue for the three months to 30 June 2026 reached 13.52 trillion yen, up 10.4% year-on-year.

The company is intensifying efforts to strengthen profitability as the sector faces mounting pressures. These include the prolonged conflict in the Middle East, US import tariffs, and increasing competition from Chinese automakers. Toyota's president and CEO, Kenta Kon, told reporters last month that the company's "break-even volume is high, we want to reverse this."