Toyota’s market cap was $220.79 billion as of August 2022.
According to our research, this places Toyota as the 42nd most valuable corporation in the world by market cap. The market capitalization, often known as market cap, is a measure of a firm’s value that takes into account all of the outstanding shares of a publicly listed company.
In This Article...
The value of the Toyota Corporation
Toyota’s net worth is estimated to be over $236 billion US. Toyota is a Japanese automaker. Toyota was established in the early 1930s by Klichiro Toyoda. It was once a component of Toyoda Automatic Loom Works, but by 1937 it was able to separate and take on its own identity with a minor name change. During its initial years of existence, Toyota created the A1 and the G1, a truck and a passenger automobile, respectively, and then it started to grow from there. The American government started imposing steep import duties when the cars started to sell well in the country. In response, Toyota established production facilities in the US. Smaller, more fuel-efficient automobiles became more popular as a result of the early 1970s oil crisis, and Toyota started to establish a reputation in this sector of the auto industry. In the early 1980s, they also started producing motorsport vehicles. They diversified into the production of luxury cars in the mid- to late-1990s, adding a line of pickup trucks and SUVs as well as starting to make the Prius, the most well-known hybrid automobile. They have increased production in Europe over the past fifteen years, establishing operations in the UK and collaborating with Formula One racing in France. They are currently the ninth-biggest company in the world by annual revenue and the largest automaker in the world. 324,747 people work for Toyota across several countries.
Toyota, a big cap?
The market value of Toyota Motor Corp., according to the declarations that were recorded, is around 211.92 B. This is considerably higher than the Consumer Cyclical industry’s average and 138.44% more than the industry average for Auto Manufacturers. The market capitalization of all American stocks is much lower than the market capitalization of the company.
The top stock among firms with a similar industry by market capitalization is now Toyota Motor Corp. Currently, the market value of the auto manufacturers sector is estimated to be around $524.82 billion. With a market cap of around 211.92 billion, Toyota holds about 40% of the stocks in the auto manufacturers sector.
What size is Toyota as a business?
References and footnotes From April 1, 2020, to March 31, 2021, is the fiscal year (FY21). References:[1][2]
Toyota Motor Corporation, also known simply as Toyota, is a multinational car manufacturer with headquarters in Toyota City, Aichi, Japan (Japanese:, Hepburn: Toyota Jidsha kabushikigaisha, IPA: [tojota], English: /tjot/). Kiichiro Toyoda established it, and it became a corporation on August 28, 1937. One of the biggest automakers in the world, Toyota produces around 10 million automobiles annually.
The business was initially established as a subsidiary of Toyota Industries, a manufacturer of machines that Kiichiro Toyoda’s father, Sakichi Toyoda, created. The Toyota Group, one of the biggest conglomerates in the world, now includes both businesses. The firm created its first product, the Type A engine, in 1934 while it was still a division of Toyota Industries, and its first passenger automobile, the Toyota AA, in 1936.
Following World War II, Toyota benefited from Japan’s alliance with the US by studying American automakers and other businesses. This allowed Toyota to develop The Toyota Way (a management philosophy) and the Toyota Production System (a lean manufacturing technique), which helped the small business grow into an industry leader and became the focus of numerous academic studies.
The Toyota Corolla, the all-time best-selling car in the world, was developed in the 1960s as a result of Toyota taking advantage of a rapidly expanding Japanese middle class to sell automobiles to. By December 2020[update], Toyota would have become one of the largest automakers in the world, the largest firm in Japan, and the ninth-largest company in the world by revenue thanks to the rising economy’s funding of a foreign expansion. In 2012, when it announced the production of its 200 millionth vehicle, Toyota made history by becoming the first automaker in the world to create more than 10 million automobiles annually.
Since the 1997 launch of the Toyota Prius, Toyota has received recognition for being a pioneer in the creation and marketing of more fuel-efficient hybrid electric vehicles. The business now offers more than 40 different hybrid car models for sale worldwide. However, more recently, the business has also been charged of greenwashing due to its skepticism of fully electric vehicles and its focus on the creation of hydrogen fuel cell vehicles, such the Toyota Mirai, a more expensive technology that has lagged well behind electric batteries.
Daihatsu, Hino, Lexus, Ranz, and the company’s own Toyota are the five brands under which Toyota Motor Corporation manufactures automobiles. The company also owns stakes in vehicle manufacturing joint-ventures in China (GAC Toyota and FAW Toyota), the Czech Republic (TPCA), India (Toyota Kirloskar), and the United States. It also owns 20% of Subaru Corporation, 5.1% of Mazda, 4.9% of Suzuki, 4.6% of Isuzu, 3.8% of Yamaha Motor Corporation, 2.8% of Panasonic, and 4.9% of Suzuki.
Who is the wealthiest automaker?
Most wealthy automakers in the world:
- Toyota. In addition to being the most well-known automobile brand in the world, Toyota is also the richest automaker.
- Tesla.
- Volkswagen.
- Mercedes-Benz
- BMW.
- Nissan Motor Co.
- It’s General Motors.
- Ford.
Which automaker is the largest?
The automobile industry plays a significant role in the global economy by creating vehicles that efficiently move people and products across entire continents as well as within individual countries. These businesses produce automobiles, trucks, vans, and sport utility vehicles. Some even manufacture motorbikes, all-terrain vehicles, as well as buses and trucks used for business purposes. The top automakers offer vehicles to people and businesses all over the world, which is an extraordinarily extensive global presence. Only a few leading industrial nations, including Japan, Germany, and the U.S., are home to the majority of these large corporations, but two other countries are represented on the list of the ten largest: Italy and South Korea.
In the United States, some of the stocks listed below are solely traded over-the-counter (OTC), not on exchanges. Compared to trading stocks on exchanges, trading OTC equities frequently entails higher transaction expenses. This can reduce possible rewards or perhaps outweigh them.
Is Ford larger than Toyota?
According to Toyota’s final sales figures, which were revealed on Monday, the company overtook Ford Motor Company to become the second-largest carmaker in the world last year, displacing it from its longtime position. Now that only General Motors stands in Toyota’s way of first place, a long-brewing challenge to American dominance over the world’s car industry is about to be launched.
Toyota executives have repeatedly argued that their objective is not simply to sell more cars than Ford or GM.
According to a spokesman for Toyota’s North American subsidiary, Mike Michaels, “the corporation does not give a whole lot of emphasis to this.” No Champagne corks, no partying.
However, Toyota is also open to expanding its vehicle sales. In fact, the corporation has stated that its objective is to have a 15 percent worldwide market share by the end of the decade, which is higher than any single automaker did last year and the level that G.M. maintained in 2002.
A biaxial battle, in which Toyota and General Motors actually go head to head in the marketplace, is one of the factors that could influence the industry, according to David Cole, president of the Center for Automotive Research, a consulting firm in Ann Arbor, Michigan.
The next question is: What consequences does that have? What happens in the area around two huge guys when they start fighting hard?
Due to its apparent superior ability to retain profits while providing high reductions compared to Ford or Chrysler, G.M. has recently led a price war in Detroit. Toyota, in comparison, has generated far higher profits despite offering fewer incentives.
The two firms looked to be shouting the loudest about expanding into each other’s traditional areas of strength earlier this month at the North American International Auto Show in this city. To compete with the largest offerings from Detroit and the new Nissan Titan pickup, Toyota unveiled a sizable new prototype pickup.
Additionally, G.M., which has previously emphasized its sport utility vehicles, was showcasing a new manufacturing technique to effectively create compact cars, a market that Asian manufacturers excel in.
According to Mr. Cole, “Toyota has acquired the mastery of exploiting economies of scale successfully,” and of the Big Three conventional domestic automakers, G.M., which openly copies Toyota’s production strategy, is catching up the quickest.
Ford versus Toyota, whose value is greater?
Greater market capitalization belongs to Toyota Motor than to General Motors, Ford, and Honda put together. We discussed the effects of geographic sales mix and transaction prices on the individual values of these companies in the first of these two-part articles. We examine how margins account for the disparity in valuations below.
Although Toyota is valued at over $200 billion, this is less than the combined total of GM, Ford, and Honda ($175 billion), hence its advantage in terms of enterprise value, net revenue, and revenue per unit sold is not as significant. The real reason why Toyota is consistently able to run at better margins. Even though Toyota sold the most vehicles out of all of these firms in 2015, it nevertheless maintained a very high operating margin. This demonstrates Toyota’s considerable competence in the automobile production process. This has historically been the primary factor in profitability and has helped the business increase its market share in the automotive sector. As a result, Toyota is the stock with the lowest relative value to enterprise value among GM, Ford, and Honda.
It’s interesting to note that in 2015, Toyota’s adjusted EBITDA for its automotive divisions was $27 billion, matching the combined EBITDA of General Motors ($12 billion), Ford ($8 billion), and Honda ($7 billion) for their respective automotive divisions. It’s also important to remember that the EBITDA margins for Ford and GM in the aforementioned table come from an extremely prosperous year. When comparing these businesses over a longer period of time, Toyota’s advantage becomes obvious.
- Due to the rise of the U.S. dollar against the Japanese Yen and many developing market currencies over the past few years, Toyota’s revenue has experienced FX headwinds. Over the same time span, it still managed to increase its margins. Looking ahead, Toyota will undoubtedly face difficulties due to Japan’s weak economy, elderly population, and crowded auto market. Its dominance in North America will probably keep its margins high.
- 2015 got off to a poor start for Honda, which had to replace its CEO due to misguided expansion plans. Honda then bounced back in the second half of the year, delivering extremely impressive results in the quarters ending in September and December. As Honda expands its position in the high-margin SUV, crossover, and mid-sized pickup truck markets, these advantages are likely to continue in the future.
- The expanding SUV and crossover market in the US has benefited both GM and Ford. They were both shielded from the consequences of adverse foreign exchange effects due to the inclusion of automobiles from these segments in their overall sales mix. For these businesses, the macroeconomic environments in China, Russia, and South America are particularly difficult. Additionally, the projected halt in market expansion in the United States could result in modest increases in profitability for both American manufacturers.