Toyota Closes 2025 on High Note Despite EV and Tariff Headwinds

Toyota Motor TM reported strong U.S. deliveries of 2,518,071 units, implying a year-over-year increase of 8%.

The electric vehicle sales for the year totaled 1,183,248, up 17.6% year over year, representing 47% of all units sold.

Toyota showed significant growth and reinforced its position as one of the leading automakers in North America, well supported by the popularity of its affordable cars. TM emerged as the second-largest automaker in the United States by sales volume, trailing only General Motors.

In the last quarter of 2025, Toyota sold 652,195 vehicles in the country, marking an increase of 8.1% compared to the fourth quarter of 2024. However, electrified vehicle sales in the fourth quarter reached 290,840 units, reflecting a 1.9% decline and accounting for 45% of total sales volume.

Toyota division ended 2025 with sales of 2,147,811 vehicles, reflecting an increase of 8.1% year over year. In the fourth quarter of 2025, the Toyota division sold 552,510 vehicles, marking an increase of 9.3%.

The Lexus division posted year-end 2025 sales of 370,260 vehicles, up 7.1% year over year. In the fourth quarter, Lexus division sales reached 99,685 vehicles, marking an improvement of 2.3%.

Toyota managed to maintain sales momentum in 2025 by absorbing the U.S. tariffs costs and benefitting from strong consumer demand for entry-level models like the Corolla sedan. However, executives said companies won’t be able to keep absorbing the tariff-related costs in the near future. Also, declining electric vehicle demand would be a cause of concern for Toyota in the near future.

Toyota Motor Corporation Price, Consensus and EPS Surprise

Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote

Zacks Rank & Key Picks

Toyota currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Mazda Motor (MZDAY), Subaru Corporation (FUJHY) and Suzuki Motor (SZKMY), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for MZDAY’s fiscal 2026 and 2027 EPS has improved 3 cents and 21 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for FUJHY’s fiscal 2026 and 2027 EPS has improved 6 cents and 2 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for SZKMY’s fiscal 2026 sales indicates year-over-year growth of 3.8%. The Zacks Consensus Estimate for SZKMY’s fiscal 2026 and 2027 EPS has improved 35 cents and 21 cents, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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