Toyota Motor Corporation TM disclosed its production and sales plans for 2016. The Japanese automaker expects global sales to be around 10,114,000 units in 2016, almost in line with the projection of 10,098,000 units for 2015. The estimate for 2015 represents a 1% year-over-year decline, as previously predicted by the company.
Toyota expects sales in Japan to increase 3% year over year to 2,231,000 units in 2016. However, sales outside Japan are anticipated to drop 1% to 7,884,000 units. In comparison, Toyota’s sales in Japan are projected to fall 7% year over year to 2,161,000 units this year, while sales outside Japan are expected to remain unchanged at 7,938,000 units.
Although 2016 sales are estimated to remain almost in line with 2015 levels, Toyota decided to raise its worldwide production by 1% to 10,196,000 units next year. The increase in global production will reflect a 1% rise in production in Japan to 4,135,000 units, while production outside Japan is planned to be nearly stable at 6,062,000 units, compared with 6,046,000 units in 2015.
The production and sales figures include passenger cars, trucks and buses manufactured by Toyota as well as its subsidiaries, Hino Motors, Ltd. and Daihatsu Motor Co., Ltd.
Total worldwide sales in 2016 are expected to improve on the back of a 4% rise in sales of Hino and a 1% increase in sales of Daihatsu vehicles. However, sales of the Toyota brand are expected to remain at the 2015 level of 9,150,000 units.
Toyota currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include General Motors Co. GM, O'Reilly Automotive Inc. ORLY and U.S. Auto Parts Network, Inc. PRTS, all carrying a Zacks Rank #2 (Buy).
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