Numbers out from Toyota are showing that the Japanese automaker still commands the top spot in a global auto market that’s been battered by microprocessor shortages.
Reuters reports Toyota sales numbers rose 10.1% in 2021 according to new estimates.
Hans Greimel at Automotive News says the company “retains (the) global sales crown,” partly by smartly managing the chip shortage.
An unnamed analyst at Yahoo News compares Toyota’s numbers to runner-up contender Volkswagen this way:
“The Japanese auto giant said it sold nearly 10.5 million vehicles in 2021, a jump of about 10 percent from 2020, including units made by its Daihatsu and Hino subsidiaries. German rival Volkswagen, which Toyota overtook last year to reclaim the top spot for global sales, said earlier this month it had shifted 8.9 million vehicles in 2021, down 4.5 percent on-year as the chip shortage squeezed sales.”
In stocks, Toyota is 10% off of all-time highs set in January, where the stock crested $210 per share for the first time.
Around $189, it’s still in a healthy part of its range, and analysts expect Toyota to outperform competitors moving into the next quarter.
Still, no manufacturer in this segment is immune to supply chain pressures.
“The U.S. Commerce Department took a global survey of semiconductor chip producers, discovering the semiconductor shortage will persist throughout 2022 due to wafer production capacity constraints,” writes Peter Brown at Electronics360. “According to a report from Reuters, the survey consisted of 150 companies that confirmed the supply chain problems, with demand for chips remaining high compared to supply, and the problem won’t be going away in the next six months.”
Keep this in mind when treating auto stocks as part of a diversified portfolio. Also, stay abreast of EV developments as the world turns, slowly but surely, to electric vehicles.