Toyota Motor’s (NYSE:TM) global sales report in August 2023 reflects nearly 9% year-over-year growth to 923,180 vehicles. Also, it produced 924,509 cars in August, up 4.3%. The 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.
August Performance in Details
Interestingly, domestic sales, including mini vehicles, accounted for most of the upside, which increased by 33.5% last month, as opposed to overseas sales, which climbed by 5.2%. In the electric vehicle (EV) space, Toyota sold 48.9% more vehicles, with support from higher demand for all its EV models.
Furthermore, Toyota’s luxury car, Lexus, experienced a significant year-over-year sales increase of 20.4% in August. On the other hand, the passenger vehicle unit of Daihatsu achieved a 5.9% increase in sales, with 58,112 cars sold. However, Hino, the truck manufacturing arm, saw a 2.6% decline in sales, with 11,783 units sold.
In terms of production figures for August, the company’s global production rose for the eighth consecutive month on a year-over-year basis. It is worth mentioning that Toyota continues to make efforts to boost production levels. TM is planning to set up a third plant in India as it is witnessing strong demand for its vehicles in the country.
Is TM Stock a Buy?
Toyota’s considerable investments in the EV market and its plans to expand its EV offerings are promising. Additionally, the recent United Auto Workers union strike against General Motors (GM), Ford (F), and Stellantis (STLA) could benefit TM by potentially affecting supply and allowing Toyota to increase its market share.
On TipRanks, TM stock has a Moderate Buy consensus rating based on two Buy and one Hold ratings. The analyst’s average price target of $207.79 implies a 13.9% upside potential from the current level.
Moreover, TM has a “Perfect 10” Smart Score on TipRanks. Interestingly, stocks with this Smart Score have the potential to beat the market average.
