Toyota to Hike Vehicle Prices by More Than $200 in the United States

Toyota Motor Corporation TM will increase prices for select vehicles in the United States by more than $200, starting in July. Prices of Toyota-branded models will rise by an average of $270. While this move comes after President Donald Trump imposed a 25% tariff on imported vehicles and parts, per a Toyota spokesperson, the tariff was not a direct factor in the decision.Per Nobu Sunaga, a spokesperson for Toyota, prices for Lexus, Toyota's premium brand, will also rise by an average of $208. Per the company, the price adjustments are part of routine updates, which consider factors like market trends and competition.The RAV4 crossover remains Toyota's top-selling model in the United States and has a current starting price of $29,250. At this price, buyers get the LE trim equipped with a 2.5-liter four-cylinder engine, paired with a DirectShift eight-speed automatic transmission and front-wheel drive. Beginning July 1, the starting price is set to rise to $29,520. The Camry ranks as the second most popular Toyota in the United States, starting at $28,700. The pricing change follows a similar move by Mitsubishi Motors Corp., which also raised prices for three U.S. models this month, attributing the increase to inflation and standard pricing reviews. Japanese automakers, who largely depend on imports for the U.S. market, have been affected by the recent tariffs on imported vehicles and parts.In 2024, Toyota Motor North America sold 2,332,623 vehicles, up 3.7% from 2023. Electrified vehicle sales reached a record 1,006,461 units, marking a 53.1% year-over-year rise and accounting for 43.1% of total sales. The Toyota brand sold 883,426 electrified vehicles in 2024, up 56.1% year over year, while Lexus sold 123,035 EVs, up 34.4%, both setting new records.Toyota expects operating income for fiscal 2026 to be ¥3.8 trillion, indicating a contraction of 20.8% year over year. Material prices and tariffs imposed by the U.S. government on vehicle and vehicle parts imports, along with investment in human resources and growth areas, are expected to be a big hit on the operating profits in the current fiscal year. In fiscal 2026, Toyota plans to spend a total of ¥1 trillion on these. Pretax profit is estimated to be ¥4.41 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025.TM’s Zacks Rank & Key PicksToyota Motor carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 1.69% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved a penny and seven cents, respectively, in the past 30 days. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Michelin (MGDDY): Free Stock Analysis Report CarGurus, Inc. (CARG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks