The world’s largest automaker Toyota Motor (TM, Financial) expects to sell 10.15 million vehicles in 2015, which is 1% lower than 2014. The expected volume is lower compared with last year as the company forecasts demand to weaken in some of its key markets such as China, Japan, and Indonesia. However, Toyota estimates the U.S. to remain a strong market. Recently the company reported March sales in two of its key markets -- China and the U.S. Let’s take a look at whether the performance of the automaker is in line with its own expectations.
A sneak peek into the number
Toyota’s sales in the world’s hottest car market China looked somewhat shaky, while it was strong in the US. The automaker’s sales in China in collaboration with its two Chinese joint ventures plunged 20.9% for the month of March. As far as the first quarter in 2015 is concerned, sales dropped 0.1%. In contrast Toyota’s U.S. sales improved 5% for the month of March as compared with a year earlier.
Toyota’s performance in the US auto market
Toyota witnessed decent sales gain in the American auto market by selling 225,959 vehicles in March. It was led by solid sales volume of luxury cars and trucks, which helped Toyota to enjoy a great slice of the market share. The combined sales of trucks and SUVs surged 12%, while sales of small SUV RAV4 climbed 28%. The company’s luxury brand Lexus also posted healthy growth as its newly introduced NX SUV sold well, helping Toyota finish the month on a joyful note.
Toyota was very close to overtaking Ford (F, Financial) to attain the second position in the US for the second time this year. Ford sold 235,929 units in March. Apart from Toyota, other automakers like Hyundai, Audi and Kia Motors also had a fantastic month.
Toyota’s performance in China market
Toyota’s March sales in China was depressing. The Japanese carmaker sold 71,500 vehicles in March, and around 227,700 vehicles for the first quarter. The company targets to sell 1.1 million vehicles in this Asian economy this year, up 6.8% from 2014. Last year Toyota sold around 1.03 million vehicles in the mainland, which was an improvement of 12.5% over 2013. This current year sales projection suggests that the growth pace has slowed down in the country.
Takanori Yokoi, a Toyota spokesman said that the newly redesigned Corolla and Levin models witnessed high volumes of sales, but plunging sales of RAV4 crossover SUV and Vios compact car hampered the company’s sales numbers. Yokoi, however, said that the company still has the capability of achieving its 2015 sales target for China.
Last word
Toyota’s performance in the U.S. and China isn’t vastly different from the company’s expectations. In the U.S., Toyota was close to clinching the second spot yet again by giving Ford a tough challenge. In China, Toyota’s sales looked pale. However, the company is still determined to rise up against the odds. Let’s stay tuned for the April numbers and see how the global automaker is faring in the two prime markets to meet its annual sales target.
