Toyota Motor Europe (TME) sales fell 7% in the first half of the year to 617,356 though the passenger car market was up 4%, driven primarily by strong-growing markets in the east. Its president is optimistic new models will soon reverse the trend.
Go deeper with GlobalData
Toyota and Lexus combined H1 market share was down 0.56 percentage points to 5.3%.
The European result reflects that for the US first half, where Toyota volume, adjusted for selling days, was off 6.8% and the automaker subsequently announced a reduction in truck and SUV production and the conversion of an under-construction plant from SUVs to the Prius hybrid.
A slump in sales of large vehicles in the United States amid soaring fuel prices, and sales down in Europe and Japan had prompted Toyota reduce its global forecast to 9.5m vehicles from 9.85m, Japan’s Yomiuri Shimbun newspaper said this week, adding that Toyota would make a final revision by the end of July. Toyota did not comment on the report.
Its European result contrasted with two key Detroit rivals whose sales have tanked at home but are booming this side of the Atlantic.
GM, which Toyota is challenging as the world’s biggest automaker by volume, posted a 2.8% increase in European sales to a record 1,160,935 vehicles, driven by growing eastern markets and the popularity of Korean-sourced Chevrolet models. And Ford of Europe boosted first half sales in its 51 markets by nearly 2% to a record 1,003,700 vehicles. In contrast, the blue oval’s H1 sales in the US were down 14%.
Toyota is confident of reversing the trend, however.
“2008 has been challenging as we prepare for a new product offensive and face tougher external pressures,” said TME president and CEO Tadashi Arashima.
“We are confident of entering a new phase of growth in-line with the introduction of 18 models, including two hybrids, to Europe. Each model will bring improved fuel efficiency, helping to expand our low CO2 sales mix.”
The Toyota brand reported January to June sales down 6% t 592,496 vehicles though Prius volume, reflecting growing CO2-based taxation and other pressures on motorists here, posted a 33% rise to 21,846, a first half record.
Corolla/Auris volume was up 23% to 55,590 and the Czech joint venture with PSA shifted 55,569 fuel-efficient Aygo city cars, up 2%).
Sales of Toyota’s best selling vehicle in Europe, the Yaris, fell 7% to 134,802 units but is no longer a new model in a very competitive B-segment with lots of updated model activity, including the redesigned Ford Fiesta due out in autumn.
Lexus sales fell 14% to 24,859 units with hybrid versions – the brand’s substitute for a meagre diesel offer – accounting for 35%.
Russia was TME’s largest H1 market with sales up 22% to 95,987 units. Russia was followed by the UK (72,315; -8%); Italy (63,294; -18%); and France (a record 56,373; +1%). First half records were also achieved in Ukraine (10,654; + 92%) and the Balkans (8,799; +18%).
