Toyota Motor Corp

Tata Motors Limited-ADR (TTM) rose by 2.1% to close at $34.83 per share at the end of the third week of June 2016.

In fiscal 2016, Honda’s Financial Services’s net revenues stood at 1.8 trillion Japanese yen. This is 18% higher than its fiscal 2015 revenues of 1.5 trillion yen.

By revenue, Honda’s Automobile segment is the company’s largest division. In fiscal 2016, ~73% of the company’s total revenues came from the Automobile segment.

At the end of most recent reported quarter, Toyota’s interest coverage ratio was 80.6x. This is far better than the GM’s interest coverage ratio of 15.6x and Ford’s ratio of 14.1x.

In the last five fiscal years, Toyota’s Financial Services’s revenues have grown by 73%. Rising revenues for the TFS segment reflects optimism in Toyota’s overall sales pattern.

Toyota (TM) has become one of the top ten biggest advertising spenders in the US. The company spent 435 billion Japanese yen, or 1.6% of its revenues, on advertising and sales promotions during fiscal 2015.

On May 23, 2016, Toyota’s forward PE ratio, based on earnings forecasts for the next 12 months, stood at 8.0x, also much higher than Ford’s 6.2x and GM’s 5.3x.

With increasing environmental awareness across the globe, a delay in Toyota’s ability to deliver mainstream eco-friendly vehicles may restrict its future growth prospects.

According to a report published by Forbes in May 2015, Toyota was the eighth-largest company in the world by revenue. The company is not directly listed in the US, although its ADR is traded on the NYSE.

Toyota (TM) has 53 overseas manufacturing companies in 28 countries and regions. Originally considered a regional auto manufacturer, Toyota has busted this myth by gaining a huge global market share, particularly in the US and Europe.

Price movement of Tata Motors Tata Motors (TTM) has a market cap of $22.1 billion. It rose by 0.32% to close at $34.28 per share on June 3, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 15.3%, 20.8%, and 16.3%, respectively, as of the same day. This means that TTM is […]

Tata Motors (TTM) has a market capitalization of $21.6 billion. It rose by 12.4% to close at $33.49 per share on May 31, 2016.

In fiscal 2016 (April 1, 2015–March 31, 2016), Toyota spent ~3.7% of its revenue, or about 1,055 billion Japanese yen, on its R&D program for its vehicles.

Toyota began using the Just-in-Time method in 1938. However, the true potential of this strategy was realized when it integrated this strategy with TPS.

Toyota established its US headquarters in 1982. It expanded into luxury cars in the 1980s, pickup trucks in the 1990s, and hybrids in the 2000s.

In 2015, Toyota ranked 11th on Forbes’s list of the world’s largest companies. This ranking was based on a composite score of the revenues, profits, assets, and market value of various companies.

As of March 29, 2016, Harley-Davidson’s forward EV/EBITDA multiple is 11x for the next 12 months.

Most of Harley-Davidson’s (HOG) manufacturing and assembly plants are located in the US.

Harley-Davidson has become a synonym for power, passion, and class among motorcycle enthusiasts around the world.

In 2015, GM remained at the top in the Chinese auto market, with the largest market share of 14.9%. This was higher than its share of 14.7% in 2014.

The majority of General Motors’ revenues come from North America. The company’s high dependence on the US market alone can be seen as a big risk.

According to 2015 sales volume, General Motors is the largest US automaker and the third-largest automaker globally.

In recent years, General Motors’ global market share has been falling. In 2015, its global market share stood at 11.2% against 11.5% two years ago.

To encourage people to purchase its vehicles, General Motors provides automotive financing services through GM Financial Company.

Ford’s market share fell from 11.1% in 2005 to ~7% in 2015, mostly due to competition outside North America and strength in the commercial vehicle segment.

Ford’s valuation multiples are in a negative trend. This could be because of the concern that US auto sales may have already peaked last year.

In 1911, three years after founding General Motors, the founder William C. Durant and road racer Louis Chevrolet created the Chevrolet brand.

Global platform consolidation under the One Ford plan has helped Ford to reduce its vehicle development–related costs.

In 2014 and 2015, Ford Motor Company (F) launched 40 new or upgraded vehicle variants globally. This was done under the One Ford plan.

North America and Europe are two important geographic regions for Ford Motor Company. The US accounts for more than half of Ford’s total revenues.

Ford’s assembly line innovation allowed it to reduce the price of its Model T to $350 from $850 and to produce a vehicle within 90 minutes.

Ford Motor Company (F) will release its 4Q15 earnings report on January 28, 2016. Nearly 43% of total analysts covering Ford have given it a “buy” recommendation.

Ford (F) commanded a global market share of 7.6% in 3Q15. In comparison, Ford had a market share of 7.3% in the corresponding quarter last year.

An introduction The Matthews Japan Fund Investor Class (MJFOX) seeks “long-term capital appreciation,” by investing “at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Japan.” While describing its approach towards investing in Asia, the fund house believes that popular equity indices […]

General Motors’s global market share in 3Q15 was 11.2% as compared to 11.4% in the corresponding quarter last year.

Reviewing Ray Dalio’s economic principles template is helpful to understand the situation in Japan. It’s important to understand Japan’s challenges.

Fiat Chrysler’s key operations include mass-market car brands such as Alfa Romeo, Chrysler, Dodge, Jeep, and Ram. Its luxury brands are Ferrari and Maserati.

Boeing bought Vought Aircraft Industries, one of its Tier 1 suppliers. This acquisition helped Boeing gain more robust control of its manufacturing process.

Tesla Motors is involved in the design, development, manufacturing, and sales of electric vehicles and advanced powertrain components for electric vehicles.

There’s a direct correlation between the size of a country’s GDP and its automotive industry. The auto industry has been expanding at a fast pace over the past several years.

There are higher maintenance and repair costs as a car gets older. This supports the option of leasing a vehicle.

The automotive industry is one of the biggest spenders when it comes to advertising. General Motors (GM) paid out $928 million during the first half of 2014.

The automotive sector plays a crucial role in job creation. Car manufacturing activity has an employment multiplier value of five.

Raw materials contribute about 47% to the cost of a vehicle. On average, an automobile is 47% steel, 8% iron, 8% plastic, 7% aluminum, and 3% glass.

German automakers lead the luxury space in the US. Daimler AG had an 18.4% share. It was followed by BMW. It had a 16.8% share.

We’ll take a brief look at industry sales to assess Toyota Motor Company’s (TM) position in the global industry. First, we’ll look at industry sales, and second, we’ll assess Toyota’s ability to capture its share of the market.

Ford is behind the industry trends with its 2013 units’ sales. Ford’s units in Latin America are roughly in line with industry sales at 8%.

Global market share is dominated by the top ten original equipment manufacturers (or OEM), which account for 81% of the global automotive industry’s annual sales.

The global automobile market is impacted by global GDP, consumer confidence, employment, the availability of credit, the price of fuel, and consumer confidence.