2023-06-14 14:32:15
For the past several years, Toyota has been the world’s largest automobile company by sales units. And you’ve had your annual meeting of shareholders.
Among the issues discussed by investors was that the company has been too slow to enter the electric vehicle (EV) business.
Management had argued for years that hybrids were a more acceptable way for customers to reduce emissions and improve gas mileage.
However, the pressure from shareholders had been too much. Management used the meeting to highlight an aggressive drive toward EV dominance.
There are several reasons why Toyota is still considered by many to be the best car company in the world.
Its market capitalization is $240 billion dollars. Although not as high as Tesla’s, which surpasses it, but compares to Ford’s $56 billion.
Another reason is the breadth and strength of its model line. In the United States it sells 53 different vehicles.
It sells vehicles with manufacturer’s suggested retail prices starting at approximately $15,000 and going as high as $90,000.
It’s hard to imagine that car buyers couldn’t find a match in Toyota’s fleet.
As with its luxury brand Lexus, Toyota vehicles stand out for their quality. They are often at or near the top of the research on how consumers view the cars they own or consider buying.
This quality advantage has been the case for decades, at least in the United States, its best market.
Another strong point for Toyota is that its revenues are strong in most regions. Dominate your local market. It is often the second best selling brand in the United States. It has a large presence in Asia and Europe as well.
Two of the top 10 best-selling cars in China are Toyota: the Corolla and the Camry. China is the world’s largest auto market by far.
As Toyota enters the EV market more aggressively, it can leverage its branding, R&D, distribution, and production prowess.
This should allow it to remain the world’s leading car company, although if the progression of electric vehicles continues to rise, it could be that consumers change their minds and choose Tesla as the future best car company in the world. It is yet to be seen.
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