Toyota Motor Corp has maintained the top position as the biggest vehicle manufacturer in the world. The company recorded 10.15 million in vehicle sales in 2015 and is considering an acquisition of Daihatsu Motor Co.
Toyota’s vehicle sales outdid industry giants such as General Motors Company (NYSE:GM) and Volkswagen. Toyota’s shares went up by 3.80% on Wednesday following the announcement, ending the day at $58 in Tokyo. The company is also in talks to acquire Daihatsu Motors whose shares shot up by 16% on Wednesday after an influx of buy orders. Toyota has also denied claims that it was planning to partner up with Suzuki Motor Corp.
Either way, both firms have important ties with Toyota. The ties with Suzuki create a path for Toyota in markets such as India where Suzuki holds the largest piece of the market share. Daihatsu, on the other hand, will be a valuable tool for Toyota to trim down its costs while at the same time reaching the lower cost brands with more efficiency. Toyota released a statement claiming that it has some ideas about the Daihatsu partnership such as a business restructuring.
Transforming the company into a fully owned subsidiary is the currently among the central plan. However, Toyota has not made any decisions yet. The company currently has a 51% stake in Daihatsu. However, Daihatsu has not been a substantial part of Toyota. Daihatsu’s global sales dropped by 13.3% according to the data presented on Wednesday. This pulled down Toyota’s overall sales by 0.8%.
Toyota’s sales have been largely dependent on the performance of its different market segments. For example, the company’s markets in the US and North America have showcased a very strong performance over the past year. However, the Japanese market has lagged behind on account of the economic situation in the country. Competitors such as Volkswagen have been extremely competitive especially in the emerging markets. VW was however slowed down by the pollution scandal.