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Toyota Shares Reach a 16-month High as Investors Support the Board and the New EV Plan

Toyota shares reached a 16-month high following a positive outcome at the company’s annual general meeting. Shareholders voted to retain Akio Toyoda as chairman, demonstrating their endorsement of the company’s board and renewed strategy. Proposals for greater disclosures on Toyota’s climate lobbying were rejected, while all 10 proposed board members received favorable votes.

The stock price of Toyota surged by approximately 4.3% to 2,276 Japanese yen per share, its highest level since February 2022. This increase outperformed the Topix and Nikkei benchmarks in Tokyo, which experienced gains of around 1% on the same day.

Although a few institutional investors expressed concerns about Toyota’s strategy, particularly its focus on hybrid, gasoline, and electric vehicles, the majority of shareholders showed support for Toyoda’s reappointment. This opposition reflects the growing pressure on Japanese companies to engage with shareholders and enhance capital efficiency and overall profitability.

In line with market demand and the industry trend towards electric vehicles, Toyota announced plans to introduce a comprehensive lineup of battery electric vehicles with “next generation” batteries starting in 2026. To facilitate this, the company established the BEV Factory, a new EV unit responsible for development and manufacturing. Toyota aims to achieve annual sales of 1.5 million all-electric vehicles by 2026 and increase it to 3.5 million by 2030.

The positive outcome of the annual general meeting, coupled with Toyota’s commitment to expanding its electric vehicle offerings, has generated optimism among investors and contributed to the surge in the company’s stock price. The result reinforces Toyota’s position as a leading global car manufacturer and underscores its determination to adapt to evolving market trends and meet future consumer demands.