Hello, everyone, and thank you so much for joining us today. I'm Kenta Kon. First of all, we would like to take this opportunity to thank our customers who choose us as well as our stakeholders who support us. It is my pleasure to discuss Toyota's financial results for the first half of the fiscal year ending March 2020.
Let me start with Slide three. I would like to explain our results for the first half of the year compared to the first half of the previous fiscal year, consolidated vehicle sales increased by 220,000 units to 4,639,000 units. This was a result of solid sales mainly in Japan, North America and Europe driven by new models such as the RAV4 and Corolla.
Now please see Slide four. Consolidated financial results for the first half of this fiscal year were net revenue of JPY15,285.5 billion; operating income of JPY1,404.3 billion; pre-tax income of JPY1,583.4 billion; and net income of JPY1,274.9 billion. Now using Slide five, I would like to explain the factors which impacted operating income year-on-year. Firstly, the effects of foreign exchange rates decreased operating income by JPY90 billion, cost reduction efforts, increased operating income by JPY60 billion. Thirdly marketing efforts, which resulted in increased sales as well as improved profitability in financial services increased operating income by JPY185 billion.
Finally, expenses decreased operating income by JPY120 billion due to a proactive allocation of R&D expenses in advanced and cutting-edge technology fields, while promoting efficiency through GPS and refining costs at all levels. As a result, excluding the overall impact of foreign exchange rates swap valuation gains-losses and other factors, operating income improved by JPY125 billion year-on-year.
Now, I would like to elaborate on operating income for each region starting from the left hand side on Slide six. In Japan, operating income was up JPY76.1 billion year-on-year to JPY827.8 billion mainly due to marketing efforts. In North America operating income was JPY222.6 billion, up JPY85.3 billion compared to the first half of the previous fiscal year. Mainly thanks to marketing efforts including increased operating income from financial services and the reduction in expenses.
In addition, we are promoting activities on all fronts, such as carefully and strategically examining the allocation of incentives, strengthening model based cost reduction activities, making efforts to improve the supply of SUV light trucks, improving the productivity of each of our manufacturing plants and reducing fixed costs on company-wide scale.
In Europe, operating income was up, JPY8.7 billion year-on-year to JPY70.6 billion, this was mainly a result of marketing efforts. In Asia, operating income, which includes consolidated subsidies in China was down JPY45.5 billion year-on-year to JPY230.7 billion, excluding the effects of ForEx rates caused by the depreciation of the Chinese yuan and appreciation of the Thai baht, operating income increased by JPY2.7 billion year-on-year. In other regions, operating income decreased by JPY16.5 billion year-on-year to JPY47.3 billion, this was largely due to the effects of ForEx rates.
Next, let me explain our consolidated subsidiaries and
Executive Vice President
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