Toyota Motor’s (NYSE:TM) global sales in May 2023 increased by nearly 11% year-over-year to 906,715 vehicles. Also, it reported a record-high production level of 947,874 cars, up 35.4%. These figures include the results of Toyota’s subsidiaries, Daihatsu Motor and Hino Motors, as well. Remarkably, strong domestic demand and supply chain recovery for semiconductors supported the company’s performance.
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Based in Japan. Toyota manufactures and sells passenger and commercial vehicles, as well as related parts and accessories.
May Performance in Details
Interestingly, domestic sales, including mini vehicles, accounted for most of the upside, which increased by 31.1% last month, as opposed to overseas sales, which climbed by 7.1%. In the electric vehicle (EV) space, Toyota sold 31.6% more vehicles, with support from higher sales of all its variants.
Furthermore, Toyota’s luxury car, Lexus, experienced a significant year-over-year sales increase of 39.7% in May. On the other hand, the passenger vehicle unit of Daihatsu achieved a 28% increase in sales with 57,674 cars sold. However, Hino, the truck manufacturing arm, saw a 15% decline in sales, with 10,563 units sold.
Coming to the production figures for May, the company’s global production rose for the fifth consecutive month on a year-over-year basis. The growth was due to TM’s efforts to build output capacity in each region due to robust demand.
Is TM Stock a Buy?
The company has been making several efforts to improve its offerings, particularly in the EV segment. TM plans to launch commercial solid-state batteries by 2027, with a target of selling 1.5 million fully EVs annually by 2026.
It is noteworthy that yesterday, Citi analyst Arifumi Yoshida upgraded the stock’s rating to Buy as Toyota’s growing market share is encouraging. Further, Yoshida is “optimistic that Q1 results will come in ahead of market expectations and open an upside Catalyst Watch.”
On TipRanks, TM stock has a Moderate Buy consensus rating based on two Buy ratings. The analyst’s average price target of $167.72 implies a 4.6% upside potential from the current level.
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