TMNot HalalF
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Compliance Status

Not Halal

Screened on Oct 14, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Toyota Motor Corporation (TM) halal? Not Halal. Based on AAOIFI screening, Toyota Motor Corporation passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

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HalalScreener rates Toyota Motor Corporation (TM) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 14, 2026. Source: https://halalscreener.app/en/stock/TM

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

121.8% of 30.0% limit
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The verdict above is final and free.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding TM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

Toyota Motor Corporation

TM: Is Toyota Motor Corporation Halal?

Toyota Motor Corporation

NYSEConsumer CyclicalJP

$194.61

Market Cap: 231.8B

Screened on a market cap of 35.6T

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About Toyota Motor Corporation

Toyota Motor Corporation is a multinational automotive manufacturer responsible for the design, production, assembly, and sale of a diverse range of passenger vehicles, minivans, commercial vehicles, and their associated components and accessories. The company organizes its operations into distinct segments: Automotive, Financial Services, and various other ventures. Its extensive vehicle portfolio includes environmentally friendly options such as hybrid cars under the Prius brand and advanced fuel cell vehicles like the MIRAI. For conventional engine vehicles, it offers models like the subcompact and compact Corolla and Raize. Under the overarching Toyota brand, the company provides mini-vehicles, general passenger cars, commercial vehicles, and automotive parts. Its offerings also encompass mid-size and luxury automobiles, alongside sports cars such as the GR Yaris, Corolla Sport, Corolla Cross, and Supra, and recreational and sport-utility vehicles like the Highlander. Furthermore, Toyota produces pickup trucks, exemplified by the Tacoma, as well as minivans, heavy-duty trucks, and buses. Beyond vehicle manufacturing, Toyota provides a suite of financial services, including retail and wholesale financing, leasing arrangements, insurance products, and credit cards. It also diversifies into the prefabricated housing sector, handling its design, manufacturing, and sales. For automotive enthusiasts, the company operates GAZOO.com, an informational web portal. Established in 1933 and headquartered in Toyota, Japan, the company boasts a global presence, conducting business across Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East.

Sector: Consumer Cyclical · Industry: Auto - Manufacturers

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Is Toyota (TM) Stock Halal? Shariah Compliance Analysis

Why this does not pass

  • Interest-bearing debt is 121.8% of market cap, over the 30% AAOIFI limit.
  • Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 14, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2026Data source: FMP-ADR
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Frequently Asked Questions

Is Toyota Motor Corporation (TM) halal to invest in?
Toyota Motor Corporation (TM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Toyota Motor Corporation get a F compliance rating?
Toyota Motor Corporation (TM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 121.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Toyota Motor Corporation's Shariah verdict?
Toyota Motor Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Toyota Motor Corporation re-screened for Shariah compliance?
Toyota Motor Corporation (TM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 14, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.