Yes, Toyota Motor Corporation (NYSE: TM), whose stock currently trades at around $140, is expected to see a modest growth of 4.2% to its Top line. The company generates its revenue primarily from its Automotive division which is projected to account for 93.1% of total revenues in FY 2020, while the Financial Services division is expected to contribute 6.9% to the top line. In this note we discuss the revenue segments of Toyota Motors, their historical performance, and expected Total Revenue for FY 2020 (ended March 2020). You can look at our interactive dashboard analysis ~ Toyota Motors Revenues: How does Toyota Motors make money? ~ for more details.
Toyota Motors Business Model:
What Does Toyota offer?
- Toyota Motor Corporation commenced operations in 1933 as the automobile division of Toyota Industries Corporation. As of March 31, 2019, Toyota operated through 608 consolidated subsidiaries (including variable interest entities) and 201 affiliated companies, of which 63 companies were accounted for through the equity method.
- Toyota primarily conducts business in the automotive industry. Toyota also conducts business in finance and other industries. Toyota sold 8,977 thousand vehicles in fiscal 2019 on a consolidated basis.
Has 2 major Operating Segments-
- Automotive Division: Toyota produces and sells passenger vehicles, minivans, and commercial vehicles such as trucks. Toyota Motor Corporation’s subsidiary, Daihatsu Motor Co., Ltd. (“Daihatsu”), produces and sells mini-vehicles and compact cars. Hino Motors, Ltd. (“Hino”), also a subsidiary of Toyota Motor Corporation, produces and sells commercial vehicles such as trucks and buses. Toyota also manufactures automotive parts, components, and accessories for its own use and for sale to others.
- Financial Services Division: Toyota’s financial services include loan programs and leasing programs for customers and dealers. Toyota believes that its ability to provide financing to its customers is an important value-added service. Toyota operates financial services companies in 37 countries and regions, which support its automotive operations globally.
What Are The Alternatives?
Major competitors are companies like Daimler AG, Volkswagen, Ford, Tata Motors, and General Motors.
What Is The Basis of Competition?
The principal factors that determine consumer vehicle preferences include overall vehicle design, price, quality, available options, safety, reliability, fuel economy, and functionality. Market leadership in individual countries in which they compete varies widely.
Toyota Motors’ Total Revenue has grown by 3.6% between FY 2017 and FY 2019, and is expected to grow by 4.2% in FY 2020: For detailed information regarding change in Sales Volumes and pricing please visit our interactive dashboard – Toyota’s Revenue
- Total Revenue has grown continuously over the past few years. It grew from $262.8 billion in FY 2017 to $272.3 billion in FY 2019. Trefis estimates Automotive Revenue to reach $283.7 billion, up by 4.2% y-o-y for FY 2020. (ended March 2020).
- Automotive Revenue has grown steadily over the past few years. It grew from $245.8 billion in FY 2017 to $253.2 billion in FY 2019. Trefis estimates Automotive Revenue to reach $264 billion, up by 4.3% y-o-y for FY 2020. (ended March 2020).
- Financial Services Revenue has grown steadily over the past few years. It grew from $17 billion in FY 2017 to $19.1 billion in FY 2019. Trefis estimates Automotive Revenue to reach $19.7 billion, up by 3.2% y-o-y for FY 2020. (ended March 2020).
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