Toyota Motor is expected to post its first profit drop in two years when it reports second-quarter earnings on Wednesday, signaling cooling demand after a run of robust earnings helped by a consumer shift away from electric vehicles.
The world's largest automaker is nonetheless expected to deliver almost $8 billion in quarterly operating profit, benefiting as drivers in several major markets opt instead for petrol-battery hybrids, which typically command higher profit margins than standard petrol cars.
Still, recent sales and production figures have indicated a modest slowdown for Toyota. It faced a delivery suspension of two models in the United States and, like global rivals, is dealing with fierce competition in China, the world's biggest auto market and one where demand for EVs has not cooled.
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