Toyota Motor Corporation (NYSE:TM)
As Japan’s largest company, Toyota boasts a market capitalization just over $200 billion, though its coveted spot as world automotive leader continues to be hotly pursued by both General Motors and Volkswagen. In addition to the Prius, the innovative Toyota also offers hybrid versions of many of its conventional vehicles, including the popular Camry. The company is enjoying a 3% growth rate in North America over last year. Toyota boasts a significant history of growth in earnings per share and net income.
Tesla Motors Inc (NASDAQ:TSLA)
This California-based company has quickly built a strong reputation in the automotive industry, despite limiting itself to manufacture of high-performance electric vehicles. Its ability to do so is due in large part to its advanced lithium-ion battery technology, which allows its models to go an impressive 300 miles per charge, a feat that has other automakers scrambling. Tesla Motors Inc (NASDAQ:TSLA) has a market capitalization of $13.77 billion, and has shown phenomenal growth since the start of the year. Despite this surge, Tesla stock still appears to have upside.
Panasonic
Toyota’s new partner in lithium-ion battery manufacture has reported growth of 52% in Tokyo and 32% on the OTC market. Panasonic’s heavy involvement in the broader tech sector has helped drive its first-half of 2013, so adding lithium-ion battery technology advances to the mix should work in its favor. The company continues to face stiff competition from rivals in China and South Korea, pushing recent strategies to eliminate unprofitable product lines with targets of a 50 billion yen net profit for the fiscal year ending March 2014, and 350 billion yen operating profit in two years.
Johnson Controls, Inc. (NYSE:JCI)
Johnson Controls, Inc. (NYSE:JCI) lays claim as the global leader in automotive battery manufacture and saw 17% growth in the first half of 2013. It recently reported third-quarter fiscal year earnings increase of 32% thanks to higher sales across its divisions. Like Panasonic, this company has broader tech interests, but continues a strong focus in lithium-ion battery technology, including a new contract with the U.S. Department of Energy.
Investing in Battery Technologies
Between 2010 and 2012, light-duty hybrid vehicle registration numbers increased by 34%, while overall vehicle registrations in the U.S. rose less than 3%, according to data compiled by R.L. Polk on behalf of Diesel Technology Forum. These figures suggest that newly registered hybrid vehicles are being purchased to replace existing conventional vehicles, supporting growth in hybrid market share.
Battery technologies will continue to drive advancements in hybrid vehicle performance, supporting continued sales growth of these vehicles. Tying your investments to companies taking the lead in cutting-edge development of these alternative energy advancements can put you in the driver’s seat for reaping the benefits of this growing automobile market niche.
Lori Weaver has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors . The Motley Fool owns shares of Tesla Motors.
The article Follow the World’s Largest Automaker’s Lead in Battery Tech Investments originally appeared on Fool.com and is written by Lori Weaver.
Lori is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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