Toyota Motor ( TM Quick Quote TM - Free Report) recently announced its plan to invest 4 trillion yen ($35 billion) for a line-up of 30 battery electric vehicles (BEV) by 2030. This will increase the company’s BEV count from the 15 models it had earlier planned to launch by 2025. It also aims to expand global sales of battery electric vehicles by 3.5 million units a year by 2030. The Japan-based auto giant has earmarked another 4 trillion yen for the development of other electrified vehicles, including hybrids and fuel-cell vehicles, by the end of the decade. Toyota will also take up its investment in battery development to 2 trillion yen ($18 billion) from the previously proposed 1.5 trillion yen. The big EV push is in sync with the company’s efforts in tapping the growing market of zero-emission vehicles. Though EVs account for a small portion of car sales, the market is growing rapidly, with new registrations increasing 41% in 2020. In that light and as a response to cut-throat competitors aggressively committing to electrified line-ups, the company has bolstered its electrification efforts in recent months. Recently, it aligned itself with the targets laid down in the European Union’s green deal measures by declaring to sell only zero-emission cars in Europe by 2035. By 2030, Toyota anticipates hybrids to comprise more than half of its total vehicle sales in the United States, with a forecast of 15% of sales of zero-emission EV and hydrogen-powered cars. The company also aims to achieve100% sales from BEV for its luxury brand, Lexus, in Europe, North America and China by 2030 and globally by 2035. Toyota aims to make its battery factory the anchorage to an industrial park called the Greensboro-Randolph Mega-site. It is a 1,825-acre land in central North Carolina that has been rezoned for heavy industry. The plant is expected to generate around 1,750 new jobs. The site, also known as Toyota Battery Manufacturing, North Carolina, will initially build lithium-ion batteries for 800,000 vehicles per year across four production lines and target to use 100% renewable energy. The company’s shares have risen 18.3% in the past year against its industry’s decline of 0.6%. Image Source: Zacks Investment Research Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold).
Better-ranked peers in the same space include Goodyear ( GT Quick Quote GT - Free Report) , flaunting a Zacks Rank #1 (Strong Buy) and Genuine Parts ( GPC Quick Quote GPC - Free Report) and Dorman Products ( DORM Quick Quote DORM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the past 60 days. Goodyear beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 88.1% over a year. Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over the past 60 days. Genuine Parts beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have rallied around 36.6% over a year. Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days. Dorman beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 9.5% over a year.