What’s Driving Toyota’s Unit Price Growth?
Toyota Motors (NYSE:TM) has grown the number of its new vehicles sold outside Japan, excluding Lexus, from 4.6 million in 2011 to over 6.1 million over the last five year period. That amounts to a growth of close to 33%. Over the same period, the revenue generated from these vehicle sales grew from $81 billion to over $113 billion, implying a growth of close to 40%. This shows that the company has grown its unit pricing faster than it has grown its unit sales. The table below shows the two main reasons for this:
- Toyota has grown its sales faster in North America over the period than internationally.
- Toyota’s unit pricing in North America has stayed at much higher levels compared to its unit pricing internationally.
Given Toyota’s increasing presence in the light trucks and SUV markets in North America, with the help of the SUV RAV4, pick-up Tacoma and SUV Highlander, it can capitalize on the booming SUV, crossover segments in the region. These vehicles command higher prices and can help the company boost its unit pricing even further.
- With EV Plans Taking Shape, What’s Next For Toyota Stock?
- Toyota Stock Looks Like A Buy Despite Tepid Guidance
- Why Toyota Stock Looks Like A Buy Despite Mixed Earnings
- With Delivery Issues Likely To Ease, Should You Buy Toyota Stock?
- Company Of The Day: Toyota
- Forecast Of The Day: Average Revenue Per Toyota Vehicle
Have more questions about auto companies? Click on the links below:
- How Do Automotive Luxury Brands Compare In Their Performance In China?
- How Does GM’s performance vary across geographies?
- How Do Auto Luxury Brands Compare In The US?
- What Is Driving Changes In Ford’s Annual Unit Sales?
- How Much Money Does Ford Make Per Car Sold?
- How Much Has GM Been Investing In Growth Opportunities?
- How Ford’s Unit Pricing Differs Across Geographies?
- How Much Has Ford Been Investing In Growth Opportunities
- Ford’s Overwhelming Dependence On North America
- How Much Profit Does Ford Make Per Unit Sold In Each Geography?
- How Different China Growth Projections Impact Ford’s Bottomline
- How Ford’s Poor Russia Performance Is Obscuring Gains Made In Rest of Europe
- How Careful Targeting of F-Series Sales Helped Ford Boost Its Profits
- How Honda’s Automotive Business Is Faring In Japan
- The Most Significant Trends For Honda Motor Company
- Honda’s Brand Image Is Changing In The U.S.
- How Honda’s Automotive Performance Differs Across Geographies
- How Much Has Honda Been Investing In Growth Opportunities
- How Differing Japan Growth Projections Impact Honda Motor Company
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Toyota Motor
See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology