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Toyota Puts Decade-Long Plan for Electric Vehicles on Paper

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Toyota Motor Corporation (TM - Free Report) has shared its plans to popularize electrified vehicles for the period 2020-2030. This is in line with the company’s developmental strategy to launch hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).

Per its Toyota Environmental Challenge 2050, launched in October 2015, the company aims to lessen the harmful impact of production and driving vehicles as well as promote usage of sustainable fuel options. Toyota aims to curb CO2 emissions of average new vehicles by 90% from the levels registered in 2010.

The company has plans to wheel out 10 BEVs worldwide by early 2020s at first in China followed by a series of gradual introductions to the markets of Japan, India, the United States and Europe.

 

Toyota Motor Corp Ltd Ord Price and Consensus

 

 

By 2030, Toyota plans to sell 5.5 million electrified vehicles, comprising one million zero-emission vehicles i.e. BEVs and FCEVs.

Further, by 2025, every Toyota or Lexus model will have a committed electrified model or an electrified option for its customers, reflecting the company’s intent of not selling any non-electrified vehicles.

The company is also developing its Toyota Hybrid System II to nurture its HEV product line. Other simpler and more powerful versions of the hybrid systems will also be developed in order to match the requirement of the automaker’s diverse range of customers.

Additionally, Toyota is focusing on developing next-generation batteries for electrified vehicles and aims to introduce the technology in the market by early 2020s.

Furthermore, to focus on battery recycling, the company promotes usage of plug-in vehicle charging and hydrogen refueling stations. Also, to serve this purpose, it is collaborating with other partner companies and government authorities.

Price Performance

In the last six months, shares of Toyota have underperformed the industry it belongs to. The stock has gained 18.8% compared with the industry’s 19% rally during the period.

 



 

Zacks Rank & Other Key Picks

Toyota sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the auto space include American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Oshkosh Corporation (OSK - Free Report) , all sporting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Axle has an expected long-term growth rate of 8.1%. In the last three months, shares of the company have been up 7.1%.

Allison Transmission has an expected long-term growth rate of 10%. In the last three months, shares of the company have been up 16%.

Oshkosh has an expected long-term growth rate of 16.5%. In the last three months, shares of the company have been up 11.6%.

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