The Zacks Automotive – Foreign industry is experiencing significant growth, driven primarily by the burgeoning new-energy vehicle (NEV) market in China, projected to hit 19 million units sold by 2026, up 15.2% year-over-year. This surge is expected to elevate NEV penetration to 54.7% of overall passenger vehicle sales, which are forecasted to modestly increase to 34.75 million units. In contrast, Japan’s vehicle sales are anticipated to stabilize around 4.55 million units in 2026, while Europe faces a decline of 1.2% in new vehicle registrations year-to-date through February 2026.
China, Japan, and Europe are pivotal markets, with foreign automakers like Nissan, NIO, and Toyota positioned to leverage emerging opportunities. Nissan plans to streamline its lineup to 45 models by fiscal 2030, with sales targets of 550,000 in Japan and 1 million each in the U.S. and China. NIO aims to expand its vehicle offerings, while Toyota’s electrified vehicle sales are expected to grow from 4.75 million to 5.06 million units in fiscal 2026.
As of now, the Zacks Automotive – Foreign industry holds a rank of #79 out of approximately 250 industries, placing it in the top 32%. Despite a modest return of 0.8% over the past year compared to the 37.4% and 46.7% growth in the broader Auto, Tires, and Truck sector and S&P 500, the industry’s earnings outlook has improved significantly, with estimates for 2027 jumping 108%.
