TOYOTA

Analysis of Toyota share price

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Latest news

Toyota's Q1 results up sharply

17/08/2021 - 07h49

The Japanese group Toyota has made a record net profit in the first quarter of its new financial year 2021/22. However, it remains cautious in the face of the global shortage of electronic components that has shaken the automotive sector for several months.

Elements that can influence the price of this asset:

Analysis N°1

Worldwide car market figures and news are important here. And we’re all about that!  We'll be carefully following new launch opportunities along with new Toyota vehicle ranges.

Analysis N°2

We’ll also continue to follow Toyota's progress on the hybrid vehicle market since the Japanese could become the international leader in this segment and thereby gain in profitability.

Analysis N°3

As far as Toyota's international expansion possibilities is concerned, we will of course follow the development of its distribution and service network which will help it break into various markets.

Analysis N°4

Data from competitors is also to be taken into account. We'll be following the evolution of market shares of each of the major players in the global automotive sector and significant events such as the release of new vehicles and other announcements with the greatest attention.

Analysis N°5

Finally, given that the Toyota group operates internationally, closely monitoring the level of global growth and the possible crises and recessions that will impact its sales is essential.

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General presentation of Toyota

Toyota's activity isn't limited to the manufacture and sale of vehicles. While the major part of its turnover is certainly acheived through this sector of activity, Toyota also offers loan services, in addition to the sale of touring cars, minivans or trucks and utility vehicles.

The Japanese company also stands out for its innovation capabilities in the field of advanced automotive technology.

The Toyota share is currently listed on the NYSE, and its price includes the calculation of the Japanese Nikkei stock index.

Analysis of Toyota share price
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The major competitors of Toyota

Knowing the competitive environment of the Toyota group is essential to understand how this value may behave in the future because its competitors may have an influence on its market share. Here is a presentation of the players in this sector in direct competition with it.

BMW 

First of all, we will of course follow the German automobile group BMW which was created in 1916 by Gustav Otto and Karl Friedrich Rapp. Today it is based in Munich in Bavaria. The group sells vehicles through several brands such as BMW, Mini and Rolls Royce as well as motorbikes under the BMW brand.

Mercedes-Benz

Another major competitor to Toyota is the Mercedes-Benz Group, which is a German car manufacturer with premium, sports and luxury models, trucks, coaches and buses. This independent company was founded in 1926 by three other manufacturers with Daimler-Motoren-Gesellschaft, Mercedes and Benz & Cie.

Honda Motor Co

Also among Toyota's major rivals is Honda Motor Co Ltd, more commonly known as Honda, which makes motorbikes, quads, scooters, business aircraft, electric generators, boat engines and garden equipment, as well as cars. The group sells tens of millions of four-stroke engines and is the world's largest producer.

Nissan Motor Company

The Nissan group, a Japanese car manufacturer formerly known as Datsun and based in Yokohama, will also be followed closely. This group has also been linked to the French group Renault since 1999 through the Renault-Nissan Alliance, which is one of the largest automotive groups in the world in terms of the number of vehicles produced. Nissan owns 15% of the Renault group and Renault owns 43.4% of the Nissan group.

General Motors 

The competition from General Motors Group, also known as GM, an American car manufacturer based in Detroit, Michigan, USA, will also be closely watched. Once the owner of more than 15 car brands, it was founded in 1908 by William Crapo Durant and was the largest car manufacturer between 1931 and 2005 and in 2011.

Stellantis

Finally, the last major competitor to Toyota is the Stellantis Group. This company is a multinational automotive group created in January 2021 and is the result of the merger between the PSA and Fiat Chrysler Automobiles groups. As a result, the Stellantis group now operates and markets more than 14 vehicle brands, with five brands from the PSA group, including Citroën, DS Automobiles, Opel, Peugeot and Vauxhall, and nine brands from Fiat Chrysler, including Abart, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati and RAM.


The major partners of Toyota

Here are the current main Toyota partners and details of their agreements.

PSA 

Since 2005, the Toyota group has been partners with PSA, one of its French competitors, with which it has pooled the production of certain vehicles and parts, particularly regarding superminis or B-segment cars.

Microsoft 

In 2016, Toyota also signed a partnership with the Microsoft group , with which it works closely on connected car projects and data-based solutions.

Suzuki Motor

The same year, Toyota mentioned a close partnership with the Suzuki Motor group as part of a cooperation which would allow the two companies to better adapt to the technological challenges facing them and the Global automotive industry.

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The factors in favour of a rise in the Toyota share price:

Firstly, the Toyota group enjoys an advantage over some of its competitors thanks to the wide range of vehicles it offers on the market. By offering vehicles of all types and with varying price ranges, the Toyota group is thus able to reach a large proportion of consumers and thus multiply its sales by reaching the different segments of the market.

Another asset of the Toyota Group is its seniority. Indeed, the Japanese group is undoubtedly one of the oldest groups in the automotive market in the world. Thanks to this seniority, Toyota benefits from a strong experience and a real know-how in this field but also from a great notoriety. 

We can of course also speak here of the Toyota company's workforce as one of its important assets. Indeed, the group currently has more than 310,000 employees worldwide, enabling it to respond more effectively to demand.

Toyota is also an innovative group and a pioneer in specific segments such as the hybrid technology segment. Moreover, in these segments, in addition to being one step ahead of its competitors, Toyota is known as a high-quality manufacturer.

This pioneering position and innovative image of Toyota is no accident. Indeed, the group has very significant research and development capabilities and is able to invest heavily in this area with world-renowned advanced engineering.

Toyota's presence on the international market is also another asset thanks to its notoriety and Japan's ability to export its products to both Europe and the American continent. In addition, the Toyota group is also relying heavily on the relocation of its production to countries such as France to reach its target markets more easily.

Finally, Toyota's communication and marketing strategy is also very qualitative with a strong presence in all media and in major sporting events for which the brand is often a sponsor.

The factors in favour of a drop in the Toyota share price:

Firstly, although Toyota is of course one of the largest car manufacturers in the world, it still competes with many other companies internationally, including several European and American groups. As a result of this very strong competition, the possibilities for increasing its market shares remain limited and Toyota has to pay particular attention to its positioning in order to remain competitive while being highly innovative.

Finally, another major shortcoming of the Toyota group concerns the specific features of the vehicles produced by this company. Indeed, the fact that Toyota's customers are offered more options than most of its competitors, who prefer to offer better equipped vehicles at the entry level, is a weak point which is likely to cause Toyota to lose part of the market.

As you can see, Toyota's shortcomings are in fact very few in number and are limited to two major weak points. However, you should not overlook these weaknesses as they can have a very strong direct impact on the price of this asset.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.
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