Toyota Motor Corp to Transfer Hamura Plant Operations to New Hino Unit in 2026

Hino will establish a new unit to oversee the transfer of its Hamura plant to Toyota in 2026. The plant currently produces buses and trucks. The move is expected to strengthen Hino's partnership with Toyota and enhance its competitiveness in the market. The new unit will be responsible for managing the transition and ensuring a smooth transfer of operations.

Investing.com has reported that Bernstein Research has upgraded Toyota's stock to "Outperform" from "Market Perform," raising its price target to ¥3,500 from ¥2,550 [1]. The upgrade is attributed to a clearer outlook on U.S. import tariffs, allowing investors to focus on Toyota's positive trajectory, particularly its new 20% return on equity (ROE) target. Analyst Masahiro Akita noted that Toyota's setting of a 20% ROE target signifies a serious commitment to achieving this goal and a clear vision for the path forward.

Toyota's U.S.-listed shares rose more than 1% in premarket trading following the upgrade. Bernstein expects stronger hybrid sales to lift margins in the near term, with hybrid sales up 19% year-to-date in 2025 and further growth forecast for 2026 and 2027. Over the mid-to-long term, value chain profit growth and realignment of group capital relationships are expected to enhance returns. Akita projects an operating profit of about 5.9 trillion yen by FY2026/27, supported by buybacks and improved shareholder returns.

Meanwhile, Hino Motors will establish a new unit to oversee the transfer of its Hamura plant to Toyota in 2026. The plant currently produces buses and trucks. The move is expected to strengthen Hino's partnership with Toyota and enhance its competitiveness in the market. The new unit will manage the transition and ensure a smooth transfer of operations.

References:
[1] https://www.investing.com/news/stock-market-news/bernstein-upgrades-toyota-stock-as-journey-to-20-roe-kicks-off-4197680