Toyota is ramping up its share buyback to ¥1.2 trillion ($8.3 billion) due to strong demand in key markets like Japan, Europe, and North America. This move, announced in May, reflects the company’s commitment to reducing strategic shares and electrifying its fleet. Despite a flat stock performance this year, Toyota’s financial results remain robust, with a 17% increase in operating profit for the quarter ending June 30.
The increased buyback program, set to run through April 2025, is aligned with the government’s push to unwind cross-held shareholdings among big enterprises. In July, Toyota revealed plans to buy back ¥806.8 billion of its stock from major Japanese banks and insurers, in line with this initiative. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group are also set to divest ¥1.32 trillion of strategic shareholdings in Toyota.
Overall, Toyota’s decision to enhance its share buyback underscores its commitment to optimizing its capital structure and aligning with evolving market trends.