The automotive industry will see a steady recovery due to the rising demand for carbon neutral vehicles and the gradual decrease in the shortage of global semiconductors. Volkswagen AG shares (OTC) are up Toyota Motor Corporation (NYSE 🙂 is a good choice. What stock do you think is the best buy? You can read more about Volkswagen AG (VWAGY) which manufactures and markets automobiles primarily throughout Europe, North America and South America. German-based Wolfsburg has four business segments. In comparison, Japan’s Toyota Motor Corporation (TM) designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It is present in Automotive, Financial Services and Other segments.

Global shortages of semiconductors, supply chain crises, and labor shortages are causing havoc in the automotive manufacturing sector. Massive government and private investment to increase semiconductor production could help ease the situation and boost auto manufacturing. Furthermore, the rising demand for electric vehicles (EVs) due to rising oil prices and climate change concerns should drive the industry’s growth. Traditional automakers may also be more profitable than specialist EV producers due to their extensive range of vehicles and market leadership. Market Research Future’s report states that between 2021-2028, the auto industry should grow at 4.5%. Both TM and VWAGY should therefore benefit.

TM stock is up 4.1%, and VWAGY returns 1%. However, VWAGY’s 49.9% gains year-to-date are significantly higher than TM’s 20.3% returns. Moreover, VWAGY is the clear winner with 62.2% gains versus TM’s 32% returns in terms of the past year’s performance.

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