Toyota Motor (NYSE:TM) witnessed a 9.2% year-over-year increase in U.S. vehicle sales for the second quarter of 2024, fueled by high demand for its electric vehicles (EVs) and popular SUVs. On the other hand, Stellantis (NYSE:STLA) reported a 21% drop in sales due to weak performances from its Chrysler, Jeep, and Ram brands.
Let’s take a detailed look at their sales report.
Toyota Delivers Impressive Performance
Toyota Motor sold 621,549 vehicles in Q2. Furthermore, for the six months ended June 30, the company sold 1,186,647 vehicles. The figure reflects an increase of 14.3% on a volume basis.
Interestingly, electrified vehicle sales surged 71.8% in the first half of 2024, constituting nearly 39% of total volume. Furthermore, SUV and truck sales climbed higher by 28.6% and 15.1%, respectively, during the period.
Stellantis Reports a Drop in Sales
The company’s U.S. sales dropped to 344,993 vehicles from 434,648 in the year-ago quarter. In addition, STLA’s sales volume decreased by 16% year-over-year in the first half of 2024.
The company’s struggles stem primarily from weakness in its core brands – Chrysler, Dodge, Jeep, and Ram – which saw sales decline between 17% and 26% in Q2. Meanwhile, STLA saw some respite from higher demand for its Fiat and Alpha Romeo brands.
To address these challenges, Stellantis launched a new incentive campaign offering up to $2,000 in cashback on select vehicles. It would be worth watching if these incentives could reignite consumer interest.
Which Auto Stock is the Best to Buy?
Among the two auto stocks, Wall Street is more optimistic about Stellantis. On TipRanks, STLA stock has a Moderate Buy consensus rating based on 13 Buys, three Holds, and two Sells. The analyst’s average price target on STLA stock of $27.86 implies a 41.71% upside potential from the current level. Shares of the company have declined 27.3% over the past three months.
