Toyota Motor (NYSE:TM): Strong Japan & China Demand Buoys April Sales

Toyota Motor's (NYSE:TM) global sales in April 2023 witnessed a nearly 5% year-over-year jump to 875,363 vehicles. The company benefitted from the strong demand for hybrids and gasoline-powered cars, particularly in Japan and China.

Toyota, which is based in Japan, manufactures and sells passenger and commercial vehicles, as well as related parts and accessories.

It is worth mentioning that while overseas sales increased by just 1.7%, domestic sales increased by 18.7%, accounting for the majority of the upside. In the electric vehicle (EV) space, Toyota reported a surge in sales of its hydrogen-powered EVs and hybrid models.

Furthermore, sales in China increased by 46% as a result of the reopening of the economy. The company said demand in the European region was down 23%, marred by the suspension of operations due to supply shortages.

In terms of production figures for April, the company's global total was 895,085, which represents a decline of 8.3% from April 2022. The decline was due to lower production in the domestic and overseas markets.

Earlier this month, Toyota disclosed its bullish plans to increase its presence in the EV market by investing about $7.4 billion in EVs by 2030. In addition, TM aims to launch 10 new battery-powered vehicles by 2026. These plans are likely to boost the company's sales going forward.

On TipRanks, TM stock has a Moderate Buy consensus rating based on a single Buy rating by Bank of America Securities analyst Kei Nihonyanagi. The analyst's price target of $167.72 implies a 19.7% upside potential from the current level.

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