Toyota Motor (TM) (JP:7203) has retained its title as the world’s top-selling automaker for the fifth consecutive year, selling 10.8 million vehicles in 2024. However, the Japanese automaker witnessed a 3.7% decrease in overall sales in 2024 compared to the previous year.
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Importantly, the company’s closest competitor, Volkswagen AG (DE:VOW), reported a 2.3% decline in sales, totaling just over 9 million vehicles. The German automaker faced headwinds in key markets, particularly China, where aggressive pricing from domestic electric vehicle makers impacted sales.
Closer Look at Toyota’s 2024 Sales
Toyota’s 2024 sales decline was primarily driven by about a 14% drop in sales within Japan. The company’s performance was affected by issues related to certification test procedures, particularly within its compact car subsidiary, Daihatsu.
Apart from Japan, Toyota also faced troubles in China, the world’s largest car market. Sales in the region dropped by 6.9% due to intense competition.
While overall sales declined, Toyota saw growth in its hybrid vehicle segment, with sales increasing by 21.1% to 4.14 million units. This surge in hybrid sales reflects growing demand in North America and Europe. The company’s EV sales in 2024 also saw a healthy increase of 34.5%, reaching 139,892 units.
Is Toyota Stock a Buy?
Overall, Toyota stock has a Moderate Buy consensus rating based on five Buy and two Hold ratings assigned in the last three months. At ¥3,221.43, the average Toyota price target implies 9.24% upside potential. Shares of the company have gained 8.8% in the past three months.
