Following Wednesday’s decision by Toyota shareholders to keep Akio Toyoda as chairman, the company’s governance and new electric vehicle plan received a strong support from investors, sending the company’s shares to a 16-month high.
At the company’s annual general meeting in Toyota City, which was Koji Sato’s first as the company’s CEO, shareholders also voted in favor of all 10 nominated board members while rejecting suggestions to demand more transparency on the Japanese automaker’s climate lobbying.
Prior to the conference, Toyota presented on Tuesday comprehensive plans to create high performance “next generation” batteries, which it aims to introduce starting in 2026, as well as new technologies designed to extend the driving range of its battery-powered vehicles. The business also declared ambitions to abandon the conventional conveyer belt technology and significantly automate its manufacturing assembly.
In brisk trading, Toyota shares finished up 6.3% at 2,310 Japanese yen ($16.48) per, marking their best close since February 9, 2022. On January 9, 2022, they reached a record closing high of 2,390 Japanese yen per share. On Wednesday, Toyota stock surpassed Tokyo’s benchmark indices, the Nikkei and Topix, which both rose 1.5% and 1.3% respectively. The increase on Wednesday came on top of Tuesday’s big gains.
The company’s strategy of concentrating on several fronts, including hybrid, gasoline, and electric cars, has come under fire from some investors as hurting the company’s ability to compete. Toyota says that doing so helps to meet the varied demands of consumers in various areas, which they expect will differ even more in the future. To that end, Toyota pledged to “accelerate localization” in plans that were announced on Tuesday.
By 2026, Toyota wants to sell 1.5 million all-electric cars yearly, and by 2030, it wants to sell 3.5 million.