Toyota Motor Corporation TM reduced its total worldwide production by 8.3% year over year to 753,321 units in May 2015. The decline resulted from a 16.8% plunge in production in Japan to 271,438 units, along with a 2.8% decrease in production outside Japan to 481,883 units. The production figure includes passenger cars, trucks and buses manufactured by Toyota as well as its subsidiaries, Hino Motors, Ltd. and Daihatsu Motor Co., Ltd.
Total sales in Japan decreased 9.1% to 138,001 units, due to a 28% fall in sales of Daihatsu and a 0.5% decline in sales of Toyota vehicles, which offset the 27.9% rise in sales of Hino vehicles. The combined market share of Toyota, Hino and Daihatsu decreased 0.7 percentage points to 41.1%.
Sales of Toyota mini-vehicles in Japan went down 0.2% year over year to 1,546 units in May. The market share of Toyota in Japan rose 2.1 percentage points to 29.2%, including mini-vehicles, but declined 0.9 percentage points to 46%, excluding mini-vehicles.
Meanwhile, exports went down 8.1% year over year to 119,965 units, due to an 8.3% decline in Toyota’s exports and a 7.4% plunge in Hino’s exports.
It is worth noting that the lower production had been planned by Toyota due to expectations of lower sales this year. The company plans to manufacture 10.21 million vehicles globally this year, down 1% over the 2014 level. Production in Japan is also likely to fall 6% to 3.97 million units. This will offset the 3% rise in production to 6.24 million vehicles, planned outside Japan.
Toyota anticipates a sales decline of 1% to 10.15 million units this year. The projected decrease in sales is due to a 9% decline expected in Japanese sales, which will offset an improvement of 2% in sales outside Japan.
Toyota currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include The Goodyear Tire & Rubber Company GT, Fox Factory Holding Corp FOXF and U.S. Auto Parts Network, Inc. PRTS. Goodyear currently sports a Zacks Rank #1 (Strong Buy), while both Fox Factory Holding and U.S. Auto Parts carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment