Stock of the week: Toyota

-- | 03/08/2021

Page 1 of 1

Toyota Snapshot

Andrew Willis: It seems like every automaker right now is rallying to design and build electric vehicles as quickly as possible, but Toyota (TM) is taking a few different routes…

It might be surprising to hear that a company with such efficient hybrid vehicles like the Prius wouldn’t be all-in on the all-electric opportunity – but they contend the best way forward is still somewhere in between gas and electric – until the end of the decade, at least.

Sector strategist David Whiston says Toyota doesn’t expect the infrastructure required to run electric vehicles will be dramatically better by 2030. They’re also making big bets on hydrogen. There are plans to build a city in Japan called ‘Woven City’ that runs on CO2-free hydrogen – with Toyota helping to supply the vehicle.

We think hydrogen fuel cells, however, may prove to be more of a Japan-only fuel, and it’s worth considering what Toyota’s automaker peers are doing in the electric vehicle space to gauge how much they may fall behind.

Toyota targets only 25% of vehicles that use electric power to be all-electric or fuel cells by 2030, while Honda targets 40%, and then 80% five years thereafter and 100% by 2040…We do think Toyota can catch up if need be – and I bet they’ll be thankful they did a battery deal with Panasonic.

For Morningstar, I’m Andrew Willis.

This report appeared on 2022 Morningstar Australasia Pty Limited

© 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written content of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.