Toyota, Mitsubishi and Subaru Boost Payouts Despite Market Pressure

Japanese car brands are increasing shareholder payouts to preserve stability in Australia’s highly competitive automotive market. However, growing competition from Chinese manufacturers and declining profits may threaten their long-term position.

Toyota Australia distributed more than $470 million in dividends to its Japanese parent, which is three times more than the previous year, even though its net profit fell. Other Japanese automakers, including Mitsubishi and Subaru, have done the same. Together, they returned around $718 million in dividends to their head offices over the past 12 months, compared to $281.1 million the year before.

Japanese brands have held a strong lead in Australian vehicle sales. Toyota’s HiLux continues to be the top-selling model nationwide, and the company maintains close to 20% market share. Despite a small revenue increase from $12.69 billion to $12.81 billion, Toyota’s profit fell to $278.5 million. This highlights stagnant earnings in the face of growing market disruptions. Mazda and Mitsubishi also reported lower profits, while Subaru saw stronger performance with $175.5 million in annual profit, nearly three times higher than the prior year's result.

Even so, this dominance is facing rising pressure. Once viewed as niche, Chinese-made vehicles are rapidly growing in popularity. Brands such as BYD, GWM, Haval and Chery are leading the charge. Data from the Federal Chamber of Automotive Industries shows that GWM is now Australia’s seventh best-selling brand, with BYD close behind. Forecasts estimate that by 2035, 43% of imported cars sold in Australia will be from China. This is a sharp rise from the current level of 17%.

Japanese carmakers continue to show outward confidence, but the decision to return larger dividends despite falling profits has raised questions about how sustainable their leadership will be. As electric vehicles reshape the industry, affordable and technologically advanced Chinese options are expected to accelerate competition. This shift could gradually weaken Japan’s long-standing grip on Australia’s roads.

Source: Australian Financial Review, China Daily 

Doga Sydney - Corporate Cuddles & Puppy Yoga

Take what you’re doing offline and circle back on team wellness because real team bonding happens with puppies, not PowerPoint. Give your team an event they’ll actually look forward to with Puppy Yoga!

We’ve got you covered with Corporate Cuddles and Puppy Yoga 🐶