While May’s UK car market total looked impressive (market up 7.9%), Toyota’s UK sales head Jon Williams has told just-auto that there is also widespread aggressive selling and ‘big discounting’ taking place.
“It seems to be occurring in all sectors of the market,” Williams said. “Volume and premium, retail and fleet. Everyone is being affected by what’s going on, including us.”
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However, Williams agrees with the current industry consensus that the UK car market will reach between 1.9m and 2m units this year. “We’re on 1.96m, but it is important to appreciate the position of the industry behind the figures. There is widespread aggressive selling and big discounting going on. Margins are very tight generally,” he said.
“And the prognosis – given the underlying economic situation – seems to be that 2013 is likely to be a flat market or see a very slight increase at best. Market conditions in the UK are going to stay tough for a while yet.”
Nevertheless, Williams is upbeat about the position of Toyota and Lexus, helped by a wave of new product.
“It’s certainly a tough market, but we are doing well,” he says, pointing to the impact of the facelifted Avensis and all-new Yaris from the second half of last year. “And Lexus is getting a big volume push from the impact of the CT 200h and there is the lift to sales from the new GS model ranges to come.”
He’s also upbeat about prospects for upcoming Toyota hybrid models. In addition to the Yaris Hybrid, the summer will also mark the debut of Prius+, the first seven-seat full hybrid in Europe and a Prius Plug-in.
Williams also notes that the GT86 is coming and believes that the ‘halo car’ will boost the Toyota brand image further. “Dealers are very excited about that car,” he said.
