Toyota's 20% ROE goal sparks hope for Japan efficiency revolution

Japanese companies still lag U.S., European peers in return on equity

20241227N Toyota logo

Toyota Motor is focusing more on services in a bid to become a comprehensive mobility company. (Photo by Akira Kodaka)

YOSHIKAZU IMAHORI, Nikkei staff writer

TOKYO -- Investors may have a new reason to buy Japanese stocks after Toyota Motor set a goal of reaching a 20% return on equity, a move that could spur greater efforts by other companies to earn more with less.

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