Tuesday, October 09, 2007

Toyota Facing Problems in Domestic Sales but Steady in Global Market

Toyota, the Japan based motor company, has recently made a cut to its yearly selling goal of 1.72 million cars. With the last quarter of the year to go, it was earlier reported that the company was thinking that the upcoming quarter would fill up the early loses of Toyota. However, Katsuaki Watanabe, the president of Toyota Motor Corporation, recently declared their new goal of 1.65 millions for 2007. The overnight increase of dollars against yen contributed much in this cut to yearly target.

Reuters reported:

Shares in Toyota hit a day's low of 6,720 yen on the news, down 1.6 percent, before ending at 6,760 yen, or 1 percent lower. Most other carmakers gained on the dollar's overnight rise against the yen.
Toyota's sales in Japan have been sliding along with the rest of the market, where many consumers have shifted to 660cc minivehicles. Excluding that segment, Japan's car market shrank 9.5 percent in September, the 27th straight month of decline from a year earlier.

However, Toyota is not facing such problem in their global sales. The company is still determined to achieve its global sales goal of 8.4 million vehicles. Toyota is getting much success in Middle East, China and Russia in terms of its sales. So, Toyota seems to be successful by the end of this year.