Erste Group Downgrades Toyota Motor (TM) to Hold

Toyota Motor Corporation (NYSE:TM) is one of the 8 Cheap Large Cap Stocks to Buy Now. On April 2, 2026, Erste Group downgraded Toyota Motor Corporation (NYSE:TM) to Hold from Buy. Erste Group said Toyota continues to deliver higher profitability than peers, with return on equity and operating margins above sector averages, supported by strong global positioning and demand for hybrid vehicles. However, the firm noted that higher energy prices and weaker consumer confidence in key markets could limit revenue growth despite planned expansion in hybrid production and sales.

On April 1, 2026, Toyota Motor Corporation (NYSE:TM) reported March U.S. sales of 211,617 units, down 8.5%.

Last month, Toyota marked 40 years at its Kentucky plant and announced a $1 billion investment across its Kentucky and Indiana operations as part of a broader plan to invest up to $10 billion in U.S. plants over five years. The investment includes $800 million in Kentucky to support electrification and increase capacity for Camry and RAV4 production, and $200 million in Indiana to expand Grand Highlander capacity alongside Sienna and Lexus TX production.

Erste Group Downgrades Toyota Motor (TM) to Hold

Toyota Motor Corporation (NYSE:TM) manufactures and sells vehicles and automotive products globally.

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