According to the Wisdom Financial APP, Toyota Motor (TM.US) will announce its second quarter performance on Wednesday, with the market expecting its profit to decline for the first time in two years, indicating a cooling demand.

Despite this, the world's largest auto manufacturer is expected to achieve nearly $8 billion in quarterly operating profit, benefiting from consumers in several major markets shifting towards buying hybrid cars with gasoline batteries, which typically have higher profit margins than standard gasoline cars.

However, recent sales and production data indicate a slight slowdown in Toyota's growth. Toyota is facing discontinuation of two models in the USA, and like global competitors, the company also faces fierce competition in the Chinese market. China, the world's largest auto market, has not cooled in demand for electric cars.

According to LSEG's survey, analysts expect this Japanese auto manufacturer's second quarter (July to September) operating profit to decline by 14% year-on-year to 1.2 trillion yen (equivalent to $7.9 billion).

This will be the first profit decline for the company since the second quarter of 2022. The company has stated that quarterly global sales decreased by 4% year-on-year, with production down by 7%.

Toyota's global strategy of expanding hybrid product lines in the USA may make it less susceptible to reductions in electric vehicle subsidies or similar policy changes, depending on the outcome of this week's US presidential election.

According to Toyota's data, from July to September this year, hybrid cars accounted for 41% of Toyota's global sales, compared to 33% in the same period last year.

Among traditional auto manufacturers, Toyota is generally considered one of the slowest companies to embrace electric cars. In the first 9 months of this year, pure electric cars accounted for only 1.5% of its global sales.

Last month, the Chairman of Toyota Motor, Akio Toyota, stated that the future shift to pure electric cars would result in unemployment for those involved in engine-related technical work, including many suppliers in the industry.

When Toyota announced its quarterly financial report for April to June, it maintained its full-year profit expectations unchanged. Due to investments in strategy and suppliers, the company expects a 20% decrease in annual profit compared to the previous fiscal year.

Since the beginning of this year, Toyota's stock price has risen by 3%, or 2% in US dollars, while the stock price of electric car competitor Tesla (TSLA.US) has fallen by 2% during the same period.