Benzinga | May 12, 2021 11:21AM EDT

Toyota Sees EVs Accounting For 80% of Global Sales By 2030, Says Chip Shortage A Small Risk

Toyota Motor Corporation (NYSE:TM), which is the world's largest automaker by market value, reported Wednesday with forecast-beating results for the fiscal year ending in March and also outlined plans to transition away from internal combustion vehicles toward eco-friendly electric cars.

Toyota's Full-Year Report: Toyota's fiscal year 2021 net income climbed 10% year-over-year to 2.25 trillion yen ($20.61 billion). This is despite sales declining 9% to 27.22 trillion yen on the back of a 14.6% drop in consolidated vehicle sales.

The company noted that sales recovered in many of the regions in the second half of the year.

Sales of EVs, including battery EVs and hybrids, came in at 2.155 million units, up 12.3% year-over-year and accounting for roughly 28% of total sales.

The Japanese auto giant also announced a 250-billion-yen share buyback program.

Related Link: Toyota's Value Addition Initiative To Vehicles With Connected Technology

Toyota's Upbeat Forecast, Green Energy Focus: Toyota guided to vehicle sales of 8.7 million for the fiscal year ending March 2022, up 13.8%. EVs would account for 2.8 million units, making up over 29% of total vehicle sales.

The company guided to net revenue of 30 trillion yen and a net profit of 2.3 trillion yen.

The company expects EVs to account for 80% of new car sales by 2030. Regionally, 95% of new vehicles in Japan will be eco-friendly models.

The company hopes to have EVs make up 70% of the total in the U.S. and 100% in Europe. In China, 100% of new vehicles sold will be EVs by 2035, Toyota said.

In a bid to achieve carbon neutrality by 2050, apart from transitioning away from ICE vehicles, the company is also focusing on introducing environmentally friendly fuel and reducing carbon dioxide emissions from existing cars.

Toyota Says Chip Crunch A Minor Risk: Toyota was the least impacted by the chip shortage that came to plague most automakers.

The company said on the earnings call that it has managed to secure enough supplies in advance, having learned a hard lesson from the global financial crisis of 2008 and the Great East Japan Earthquake in 2011.

Toyota said it sees the issue as a small risk and does not expect it to impact its results in the immediate future.

TM Price Action: At last check, Toyota shares were up 1.6% to $154.69.

Related Link: EVs Kingdom -- Do Traditional Automakers Have A Shot?

Courtesy photo.