Why is Toyota Outperforming All Other Automakers?
In general, analysts say that Toyota is outperforming all other major automakers. But why is Toyota outperforming all of them? Why is Toyota’s stock price outperforming the rest of the auto industry? Toyota’s competitive cost advantage is one reason it can build vehicles for thousands less than the Big Three. And the weak dollar reduces the value of Toyota’s U.S. sales and makes its imports more expensive.
The Tacoma dominates the midsize truck segment, and in Q3 sales topped 60,000 units, breaking a new record for the company. Meanwhile, Toyota’s SUVs boosted overall sales the most, with the RAV4 and NX posting double-digit increases. Both models set new sales records. However, the sales of Toyota’s vehicles are still down compared to past years.
Despite the chip issues, the company still has the highest market share in the United States. Its third quarter sales were 8% higher than in the previous quarter, while sales of its Lexus brand rose by 32%. While this is a big boost for Toyota, it’s no guarantee that it will continue to outperform the market leader. Toyota is credited with better management of the chip issue.
While the market share gap in the U.S. is closing, Toyota has a huge edge over other automakers in terms of production costs. Toyota’s Camry, which is the best-selling car model in the United States, is a prime example of its efficiency. Auto buyers have consistently judged Toyota as better than other brands based on its cost-effectiveness and perceived quality. This has led to the success of Toyota and Lexus.