PLANO, Texas - Toyota Motor (NYSE:TM) North America (TMNA) has seen a significant increase in the sales of its electrified vehicles, which include hybrids, plug-in hybrids, pure electrics, and fuel cells. In September, these vehicles accounted for 48.4% of the company's total sales volume, marking a 22.4% rise on a volume basis compared to the same period last year. The trend is reflective of a broader shift towards electrified vehicles, with TMNA's year-to-date sales of such vehicles up by 56%, representing 41.1% of total sales.
Despite the growth in electrified models, overall vehicle sales for TMNA in September experienced a downturn, with a 20.3% decrease on a volume basis compared to September 2023. This decline extends to the third quarter, with an 8% drop in total sales volume. However, the company's focus on electrified vehicles appears to be paying off, as sales for this category within the quarter rose by 38.6%.
Toyota's division sold 140,152 vehicles in September, while Lexus, the luxury division, sold 22,443 vehicles, with both divisions witnessing a decrease in total sales volume compared to the previous year. Despite this, Lexus has achieved its best-ever sales result in its 35-year history on a year-to-date basis.
Jack Hollis, executive vice president of Sales at TMNA, attributes the success of electrified models to the company's diverse portfolio and commitment to offering customers a variety of powertrain options. With a lineup of 30 electrified vehicle options now available at Toyota and Lexus dealerships, the company is poised to end the year on a strong note while focusing on customer satisfaction.
The all-new all-hybrid Toyota Camry has been well received, and Toyota continues to hold its position as the number one retail brand in the industry. The company's ongoing investment in sustainable mobility is highlighted by its plans to open a 13th plant in North Carolina by 2025, dedicated to manufacturing automotive batteries for electrified vehicles.
This article is based on a press release statement from Toyota Motor North America.
InvestingPro Insights
Toyota's strategic focus on electrified vehicles is yielding positive results, as evidenced by the significant increase in sales for this category. This aligns with several key insights from InvestingPro.
According to InvestingPro data, Toyota's revenue growth stands at an impressive 18.3% for the last twelve months as of Q1 2023, with quarterly revenue growth at 12.24% in Q1 2023. This robust growth is likely supported by the company's strong performance in the electrified vehicle segment.
An InvestingPro Tip highlights that Toyota is a "Prominent player in the Automobiles industry," which is clearly demonstrated by its market-leading position in electrified vehicle sales and its status as the number one retail brand in the industry.
Despite the recent decline in overall sales, Toyota's financial health appears strong. The company boasts a low P/E ratio of 7.04, which an InvestingPro Tip notes is "low relative to near-term earnings growth." This suggests that Toyota's stock may be undervalued considering its growth prospects in the electrified vehicle market.
It's worth noting that Toyota has "maintained dividend payments for 45 consecutive years," according to another InvestingPro Tip. This long-standing commitment to shareholder returns, coupled with the company's strategic pivot towards electrification, may appeal to both value and growth investors.
For those interested in a deeper analysis, InvestingPro offers 9 additional tips for Toyota, providing a comprehensive view of the company's financial health and market position.
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