Toyota Motor (NYSE:TM) reported strong U.S. sales for 2023, reflecting a strong performance backed by high demand for its hybrid-electric vehicles. At the same time, Stellantis (NYSE:STLA) witnessed a slowdown in sales during the year owing to higher interest rates impacting the affordability of cars.
Let’s take a detailed look at their sales report.
Toyota Delivers Impressive Performance
Toyota Motor sold 2,248,477 vehicles in 2023, up nearly 7% year-over-year. Interestingly, electrified vehicle sales surged 30%, constituting nearly one-third of total volume. For the three months ended December 31, 2023, the company sold 619,661 vehicles in the U.S. The figure reflects an increase of 15.4% on a volume basis.
As supply chain and logistical disruptions eased in the second part of 2023, the automaker witnessed a significant increase in product availability. In addition, the launch of the Grand Highlander mid-size SUV contributed to these positive results.
Stellantis Reports a Drop in Sales
The company witnessed a 1% drop in U.S. sales for 2023. STLA sold 1.53 million vehicles in 2023, down from about 1.55 million sold in the previous year. Moreover, Stellantis’ Q4 2023 sales dropped 1% to 344,000 vehicles.
Sales of Stellantis’ Chrysler and Dodge models were up 19% and 5%, respectively, in 2023. Meanwhile, Jeep, Ram, Fiat, and Alfa Romeo sales declined by 6%, 1%, 34%, and 15%, respectively. Investors should note that STLA’s production numbers in the fourth quarter were impacted by a prolonged strike by the United Auto Workers union.
Which Auto Stock is Best to Buy?
Among the two auto stocks, Wall Street is more optimistic about Stellantis. On TipRanks, STLA stock has a Strong Buy consensus rating based on 13 Buys, one Hold, and one Sell. The analyst’s average price target of $26.03 implies a 17% upside potential from the current level. Shares of the company have gained 26.8% over the past six months.
Moreover, STLA has a “Perfect 10” Smart Score on TipRanks. Interestingly, stocks with this Smart Score have the potential to beat the market average.
