What You Need To Watch At Toyota Motor Corporation (ADR) (TM)

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Threats

Competition is one of the biggest risks associated with investing in the auto industry as the industry is extremely competitive. Toyota’s biggest competitors are General Motors and Volkswagen, and these three giants dominate the auto industry. However, the company also faces threats from relatively smaller players like Ford and Honda Motor Co Ltd (ADR) (NYSE:HMC). In order to measure how the company performs compared to competitors, we will need to look at some of the upcoming models from all the companies. Ford’s Focus recently beat Corolla and became the best-selling car, so threats are increasing as Ford and General Motors continue to release better vehicles. Toyota’s Corolla has lost some of its edge and dominance in recent years, and consumers are now expecting further improvement in quality and design from the company.

Conclusion

The auto industry looks set to give investors major returns, but only for those who invest in the right auto company. The competition in the industry is as fierce as ever, as all the major players are expected to release their latest auto models. Some investors might stick to investing in the good old American companies like General Motors and Ford. However, I believe that Toyota can beat all odds and become the leader in the industry, once again. Ford and General Motors have had problems in the European markets, and both are still struggling in that particular market. Toyota, on the other hand, is trying to improve its position in the huge Chinese market. Toyota’s future growth opportunities and expectations of increasing profitability are just too good to ignore, which is why investing in Toyota might well be worth the risk.

The article What You Need To Watch At Toyota Motors originally appeared on Fool.com and is written by Yasir Idrees.

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