How Does Toyota Compare In North America With Ford and GM?

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Trefis
TM: Toyota Motor logo
TM
Toyota Motor

Toyota Motor Corporation (NYSE: TM), the Japanese auto giant, sells its automobiles across regions like Asia-Pacific, North America, Europe, Central & South America, Oceania, Africa, and the Middle East. Here, Trefis analysis compares Toyota’s sales volume across North America compared to American auto giants like Ford and General Motors, and also how important is the North America region to Toyota Motors. For detailed analysis please check our interactive dashboard – How important is the North America segment to Toyota Motors? In addition, here is more Consumer Discretionary data.

 

How has Toyota Motors fared in North America with respect to its peers?

  • Toyota Motors sales volume in North America is lower when compared to Ford and General Motors. Though, all companies have seen a fall in sales volume primarily due to a global slowdown.
  • Sales volume in North America region for Toyota Motors declined from 2.84 million units in the calendar year 2016 to 2.77 billion in the calendar year 2018. Trefis estimates sales volume to be around 2.69 million units in the calendar year 2019.
  • Sales volume in North America region for Ford declined from 3.02 million units in the calendar year 2016 to 2.92 billion in the calendar year 2018. Trefis estimates sales volume to be around 2.89 million units in the calendar year 2019.
  • General Motors has the highest sales volume in North America region among the 3, but they also saw a decline from 3.96 million units in the calendar year 2016 to 3.56 billion in the calendar year 2018. Trefis estimates sales volume to be around 3.38 million units in the calendar year 2019.
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Note: For the sake of comparison in this section we have taken the units sold numbers as per calendar years of 2016 to 2019E as Toyota Motors’ year ends in March while Ford and General Motors follow a calendar year. In the rest of the dashboard the Toyota Motors numbers are as per year ended in March.

 

How has Toyota Motors Revenue moved in the past and what is its forecast?

  • Total Revenue has seen a steady but consistent increase over the last few years. Revenue increased from $262.8 billion in 2017 to $283.7 billion in 2019. Trefis estimates revenue to reach $283.7 billion in 2020.
  • Japan region is the highest contributor to revenue and has seen a steady revenue growth from $112.2 billion in 2017 to $117.5 billion in 2019. Trefis estimates revenue to be around $123.4 billion in 2020.
  • North America region is the second highest contributor but has seen revenue decline from $77.5 billion in 2017 to $76.5 billion in 2019. Trefis estimates revenue to be around $79.4 billion in 2020.
  • Europe region has seen a steady revenue growth from $20.3 billion in 2017 to $22.9 billion in 2019. Trefis estimates revenue to be around $22.7 billion in 2020.
  • Asia region had steady revenue growth from $36.5 billion in 2017 to $39 billion in 2019. Trefis estimates revenue to reach $41.1 billion in 2020.
  • Central and South America, Oceania, Africa, and the Middle East regions have seen fluctuating revenue as it went from $16.4 billion in 2017 to $16.5 billion in 2019. Trefis estimates revenue to be around $17 billion in 2020.

 

What is the trend and relative contribution of North America region to Total Revenue and Total Operating Profit for Toyota Motors?

  • North America region was 2nd highest contributor to Total Revenue over the past few years. The metric has declined from 29.5% in 2017 to 28.1% in 2019. For 2020 Trefis estimates a small reduction in the metric which should stand at around 28%.
  • In regards to Operating margin, like other companies Toyota Motors has also seen a squeeze in operating profit margins in the North American region. This has led to a decrease in the region’s contribution to Total Operating Profit. The metric fell from 15.6% in 2017 to 4.6% in 2019. Trefis estimates it to recover a bit to 4.7% in 2020.

 

Thus, compared to North American giants such as Ford and GM, Toyota has a lower sales volume in North America but the region is still quite important to the company as it contributes more than 28% of its Total Revenue. This makes it a very important region for Toyota Motors’ growth.

 

 

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