As a driver, you may be annoyed by the ongoing discussion and pros and cons of different drive technologies. There are good arguments for both combustion engine vehicles and battery and hydrogen-powered vehicles. Japanese car manufacturer Toyota has the perfect answer for this: technology openness!

Variety is trump at Toyota! Toyota has just announced that it will offer battery electric vehicles with ranges of up to 1000 kilometres based on its next-generation lithium-ion batteries from 2026. Nevertheless, plug-in hybrids with combustion engines and hydrogen technology will remain in the program. The strategy of the world’s second largest automobile manufacturer after Volkswagen is comprehensible. Toyota serves many different markets, including those that cannot build an infrastructure for pure electric mobility in the foreseeable future.

Toyota Motors corporate development; source: aktienscreener.com

Fundamental Development When looking at the fundamental indicators, it can be seen that while the turnover more or less stagnated in the past crisis years, the profit development remained stable. This is by no means self-evident in view of the upheavals in the automotive sector. In the just ended quarter, the company more than doubled its operating profit and increased its full-year forecast by 50 percent. It benefited from the rising global demand and the weakness of the yen. In the period from June to September 2023, Toyota earned around nine billion euros (1.44 trillion yen), a 155.6 percent increase over the same period the previous year. For the financial year ending in March, an operating profit of 4.5 billion yen is now expected instead of three billion.

Toyota Motors share (ISIN US8923313071 – 1 year in daily chart; source: aktienscreener.com

Look at the chart of the Toyota Motors share The chart picture conveys the impression that the bulls are still on board. On the downside, the security recently bounced off the sloping diagonal upwards several times. On the upside, you can see from the distances to the 50-day average that the Toyota Motors share was heavily overbought in mid-September. The surge in share price following the latest quarterly results shows that market participants are bullish on the stock. Pullbacks to the yellow 20-day average can be seen as buying opportunities.

Conclusion Toyota Motors is currently doing very well. Compare it with the car manufacturers from Europe and the USA.