What Are The Key Sources Of Revenue For Toyota Motors?

by Trefis Team
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Toyota Motors Corporation (NYSE: TM), the world’s largest automaker by sales, sells its cars mainly under three brands –  Toyota, Lexus, and Scion. The Japanese automaker is an expert in the production process of vehicles and consistently designs and manufactures vehicles more efficiently than its competitors. TM also has a majority stake in Daihatsu and Hino Motors, and minority shareholdings in Fuji heavy industries, Isuzu motors, Yamaha motors, and Mitsubishi aircraft corporation. The company also runs a housing, IT, and other services businesses in Japan. In this note, we briefly discuss the major revenue sources for Toyota Motors. We expect the company to report $268 billion in revenue in FY’19.

We currently have a $122 price estimate per share for the company, which is slightly below than the current market price. View our interactive dashboard – Revenue Break-up of Toyota Motors – and modify the key drivers to arrive at your own price estimate for the company.


  • Automotive (93%) – Toyota’s average revenue per vehicle reached its highest levels of around $28,000 in 2010. However, this figure declined gradually to $26,480 in 2016. With an improved product portfolio, we expect the company’s average revenue per vehicle to improve to $27,000 in 2019. However, a shift in consumer preferences towards bigger vehicles might drive down the average price for the company, since it isn’t a mass producer of bigger vehicles. According to our estimates, the segment is likely to report vehicle sales of 9.23 million, translating into revenue of $249 billion in 2019.
  • Financial segment (7%) – Toyota Financial Services (TFS) primarily generates revenue from interest on automotive loans and leases to vehicles, and industrial equipment dealers and their customers. TFS also provides a full lineup of financial support to its customers including credit cards, home loans, bonds, investment trusts, and other financial products and services. We expect the division to generate $18.3 billion in revenue in 2019.

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