Toyota Motor (NYSE:TM) recently reported record-high global sales and production levels for September 2023 and a 2% market share expansion within Japan. Also, in the first half of FY2024 (April to September), sales and production increased 8.3% and 10.1%, respectively, from the prior year. The company’s performance was supported by strong domestic demand and a supply chain recovery for semiconductors.
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Toyota is a Japanese automotive manufacturer known for its wide range of vehicles and innovative technologies.
September Performance in Details
The automaker reported worldwide sales of 1,003,779 vehicles, up 10.5% from the previous year. Of the total sales, domestic sales increased by 15.8% last month, and overseas sales climbed by 9.3%. In the electric vehicle (EV) space, Toyota sold 51.6% more vehicles, with support from higher demand for all its EV models.
Additionally, Toyota’s luxury car, Lexus, experienced an impressive year-over-year sales increase of 32.2% in September. On the other hand, the passenger vehicle unit of Daihatsu achieved a 2.4% increase in sales, with 71,350 cars sold. However, Hino, the truck manufacturing arm, saw an 11.6% decline in sales, with 11,121 units sold.
In terms of production figures for September, the company disclosed production of 1,037,363 vehicles. Region-wise, output was boosted considerably in Argentina, the U.K., and India. Meanwhile, production in Thailand, Indonesia, and Vietnam fell in September due to challenging economic conditions.
Is TM a Good Buy?
Toyota stands to benefit from the month-long strike at Ford (F), Stellantis (STLA), and General Motors (GM) factories. It is worth mentioning that TM continues to make efforts to boost production levels and expand EV market share.
On TipRanks, Toyota stock has a Moderate Buy consensus rating based on a single Buy rating by Bank of America Securities analyst Kei Nihonyanagi. The analyst’s price target of $207.79 implies a 20.2% upside potential from the current level. Shares of the company have gained 25% year-to-date.
Importantly, TM stock has an Outperform Smart Score of nine on TipRanks, which points to its potential to beat market averages.
