...Leading Global Automaker: Toyota Motor Corporation's (Toyota) ratings reflect its leading global positions, wide product range, geographic diversity, economies of scale, and strength in hybrid vehicles. Modest FY15 Sales Volume: Fitch Ratings expects Toyota's sales volume growth in financial year 2015 (FY15, to March 2015) to be modest (FY14: 2.8%), with growth in North America and Asia offsetting a decline in Japan following the April 2014 consumption tax hike. Stable Profitability: We expect Toyota to maintain EBIT margins of around 6% in FY15 as it benefits from continued cost-efficiency measures. However, larger-than-expected volume declines in Japan and certain emerging markets; and heightened competition in key markets such as the US, could erode profitability. Toyota's profitability in FY14 was boosted by a weaker yen, with EBIT margins on industrial operations rising to 8.2% from 4.8% in FY13. Fading Weak-Yen Benefits: We expect the positive boost to profitability from a weaker...
