24/7 Insights
- China is becoming a graveyard for car companies that are not local.
- That is especially so for those trying to sell electric and hybrid vehicles there.
Toyota Motor Corp. (NYSE: TM), the world’s largest car company, is struggling. Its sales fell by 0.5% in April. That was not the bad news. Sales in China slid 27%. That was, according to Reuters, even though it had aggressive incentive programs. It is tough news for manufacturers that compete with rising Chinese rivals, particularly those in the electric vehicle (EV) and hybrid segments. The market is crucial to Tesla Inc. (NASDAQ: TSLA), which counts on it for a very large percentage of its sales.
Although Toyota sells hybrid models in China, it does not sell EVs. The market has moved quickly to locally made hybrids and EVs, which has helped local companies like BYD but hurt manufacturers like Tesla and now Toyota.
Toyota and Tesla will continue to struggle in China because there are 200 hybrid and EV makers there. Some are relatively large, including BYD, the largest EV company in the world. Although not all 200 companies will stay in business, each represents a market share challenge to Tesla, Toyota, and other Western vehicle operations.
China has become a graveyard for several Western car companies. Ford’s sales have trended down by double-digit percentages from last year. General Motors has posted similar numbers.
Tesla has been described as a very different company from Toyota because of their product mixes. However, they share a major hurdle in China’s crowded market.
See the Top 10 EV Brands Right Now
∴
Buffett Missed These Two…
Warren Buffett loves dividend stocks, and has stuffed Berkshire with some of his favorites.
But he overlooked two dividend legends that continue to print checks on a new level, they’re nowhere in his portfolio.
Unlock the two dividend legends Buffett missed in this new free report.
The post Toyota’s China Numbers Bad for Tesla appeared first on 24/7 Wall St..
Click this link for the original source of this article.
Author: Douglas A. McIntyre
This content is courtesy of, and owned and copyrighted by, https://247wallst.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.