TOYOTA

Analysis of Toyota share price

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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

To date, the Toyota group is the largest automobile manufacturer in the world with regards to turnover achieved. But it's also ranked at the top in the stock market value thanks to market capitalization higher than that of its main opponents.

In 2017, Toyota was still the leader in the automotive market with a value maximisation of $ 24.5 billion and results that continue to increase from one year to the next.

Other competitors

Then come less serious competitors although very present on the market, Mercedes, Honda, Nissan and Volkswagen.

PSA and Renault

On the French market, in terms of vehicle sales, Toyota faces competition from PSA and Renault.


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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