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Toyota (TM) Projects Global Sales Increase of 1% for 2017

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Toyota Motor Corporation (TM - Free Report) expects global sales to increase by 1% to 10.202 million vehicles in 2017 from its annual expectation for 2016 triggered by higher sales in North America, China, Europe and Asia. Launch of new models, including the C-HR compact sport utility vehicle, will also drive sales for the automaker. These benefits will offset the sluggish demand in the Middle East due to low oil prices.

Toyota will also ramp up the productivity of Toyota, Lexus, Daihatsu minicar and Hino Motors Ltd truck brands in 2017. Sales from these brands are expected to increase to 10.2 million vehicles in 2017. The company also focuses on improving the productivity of its group by 1% to 10.36 million vehicles in 2017.

Toyota has been the world's best-selling automaker in 2015. However, for 2016, annual global sales are expected to be 10.09 million vehicles, lower than prior estimate of 10.11 million. Sales are likely to be affected by the sluggishness in Southeast Asian markets.
 

Price Performance

Toyota’s share price has dipped 0.86% year-to-date reflecting the decline in its guidance for earnings, operating income and revenues for fiscal 2017. Settlement of a U.S. truck lawsuit, string of product recalls and declining sales outside Japan have been affecting the share price of Toyota. Nevertheless, Toyota has performed better than the Zacks categorized Auto-Manufacturers-Foreign industry, which has suffered a year-to-date decline of 4.03%.  


Zacks Rank & Other Key Picks

Toyota currently carries a Zacks Rank #1 (Strong Buy).

Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .

All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here..

Allison Transmission has a long-term expected growth rate of 11%.         

America's Car-Mart has a long-term expected growth rate of 45.5%.    

Rush Enterprises has a long-term expected growth rate of 15%.

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