Yesterday, Toyota Motor (NYSE:TM) disclosed bullish forecasts for the current year and plans to accelerate the electric vehicle (EV) push, while announcing the results for Fiscal Year 2023. The automaker’s performance benefited from favorable forex rates and increased sales volumes, partially offset by higher raw material costs and production constraints.
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For the full fiscal year, Toyota reported 18% year-over-year growth in revenue to ¥37.15 trillion ($273.6 billion). Meanwhile, operating income declined 9% from Fiscal Year 2022.
Moving forward, the company aims to increase its presence in the EV market by investing about ¥1 trillion or $7.4 billion in EVs by 2030. In addition, Toyota expects to introduce 10 new battery-powered vehicles with an annual sales target of approximately 1.5 million BEVs by 2026.
For the fiscal year 2024, Toyota aims to sell 202,000 BEVs globally, five times more than the 38,000 vehicles sold in the last year. The company’s bull plans are based on the assumption of a softening of the global supply chain that caused a chip shortage.
In addition, Toyota forecasts operating income to increase by 10% to $3 trillion ($22.2 billion) in fiscal year 2024, supported by BEV sales growth expectations.
Is TM Stock a Buy?
The company’s strategic approach to gaining market share in the EV segment seems promising. Nevertheless, Toyota continues to face intense competition from its peers such as Tesla (TSLA) and the Chinese automakers.
