Why Toyota's Optimism Bodes Well for the Automotive Sector
Ever-escalating sticker prices, rising interest rates, and supply shortages cast a pall over the auto industry in 2022, when new vehicle sales in the U.S. were the lowest since 2011. But there are indications that the supply chain woes that have plagued the industry for the past couple of years are easing, and dealer inventories are beginning to rise.
This might be why Toyota Motor (NYSE: TM) plans to build as many as 10.6 million vehicles worldwide in fiscal year 2023 (starting on April 1), an increase of 1.4 million units from fiscal year 2022. But the automaker's figure comes with a caveat: Final production totals for 2023 could be 10% lower if semiconductors or other essential parts are in short supply.
The announced production figures apply to the company's Toyota and Lexus brands, and not its Daihatsu minicar or Hino truck making subsidiaries.
Source Fool.com
