Toyota may Fail to Meet the 2008 Sales Target as Sales Falling down in the U.S., Europe and Japan

Toyota is facing problems to meet the company’s global sales target. As sales in the U.S., Europe and its domestic market are falling down, Toyota might miss the sales goal of 2008. However, the good news is that the company is doing well in the emerging markets like China and Russia. To add, the price of the raw materials has also been increased. U.S. market is going to experience decline for the third year in a row. The economic slump in the U.S. is affecting the sales of the car manufacturers. The global sales target of Toyota this year is 5 percent up compared to that of last year.

Reuters reported:

"Frankly speaking, sales in the U.S., Europe and Japan are showing signs of slowdown. It will be difficult to meet the group's sales target of 9.85 million, although emerging markets such as China and Russia are active," Tokuichi Uranishi, executive vice president of Toyota, told reporters in Seoul.

Rising raw material prices are another concern to Toyota, the world's most profitable and valuable car maker, said Fujio Cho, chairman of Toyota, and Uranishi, who is one of the top executives at Japan's top automaker.

"The rise in raw material prices has been excessive this year. Coping with this is one of our top priorities," Cho said.

Global demand for cars, especially in the United States, is weakening due to a slowing economy and the ongoing credit crisis.

Toyota is now focusing on both luxury and general cars in order to capture more market share. The company is planning to launch Prius hybrid car in South Korean market, where Toyota has sold only luxury car. As the market is not supportive for auto makers, Toyota may have to move from their global target and focus on holding market share.