Toyota Motor Corporation (TM) Outperforms in China

Toyota Motor Corporation (NYSE:TM) is among the 8 High Growth EV Stocks to Buy Now. 

Toyota Motor Corporation (TM) Outperforms in China

According to a Reuters story on December 10, 2025, Elliott Investment Management has raised its ownership of Toyota Industries to 5.01%. According to Reuters’ Daniel Leussink, Elliott paid approximately 268 billion yen for the share, based on a Japanese regulatory filing. The move puts more pressure on Toyota Motor Corporation (NYSE:TM), which is planning to buy out a forklift producer, as reported by Reuters. The shares were purchased for investment purposes, as stated in the filing.

On December 11, 2025, Bloomberg reported that despite a significant industry transition toward electrified vehicles, Toyota Motor Corporation (NYSE:TM) had outperformed many of its international competitors in China. According to Bloomberg, Toyota Motor Corporation (NYSE:TM)’s exports in China last year fell 14% from their 2022 peak, whereas Ford Motor Co. and Volkswagen AG saw drops of almost 80% and roughly one-third from record levels, respectively.

According to Bloomberg, Toyota Motor Corporation (NYSE:TM)’s long-standing hybrid strategy helped the company’s sales with models like the Corolla, Levin, Camry, and Highlander. Automotive analyst Julie Boote of Pelham Smithers Associates noted that Toyota Motor Corporation (NYSE:TM) began offering steep discounts in 2023, which raised sales but decreased profitability. She anticipated that profits from China operations would plummet from 525 billion yen in fiscal 2021 to around 290 billion yen three years later. Furthermore, according to Bloomberg, Toyota Motor Corporation (NYSE:TM) intends to establish an entirely owned Lexus production plant close to Shanghai in 2027, with an initial capacity of roughly 100,000 units.

Toyota Motor Corporation (NYSE:TM) is one of the world’s largest automakers, selling 11.0 million vehicles at retail in fiscal 2025, including 10.3 million under the Toyota and Lexus brands.

While we acknowledge the risk and potential of TM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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