Toyota outsales GM in June but there is nothing to be happy about it

Toyota Motor Corporation(TYO: 7203), the largest automaker of Japan will over take General Motors Corporation(NYSE:GM) in the monthly US sales in June but there is nothing to be happy about it as the US economic slowdown is still continuing and the automaker is struggling with downward auto sales. Auto industry experts and analysts are expecting another “double digit dip” in auto sales in June.

Higher fuel price, weak economy, and lower consumer confidence has resulted into switching over small fuel efficient cars and cross over vehicles. This has proved to be a boon for the Japanese automakers like Toyota Motor Corporation and Honda Motor Company Limited (TYO: 7267) that depends less on the sales of trucks and SUVs like the three largest American vehicle makers: GM, Ford and Chrysler.

Still, Toyota is experiencing its share of problems. The company is hardly keeping up with the high demand of its Hybrid Prius. More over, it has cut down its pickup and light truck production.

Famous marketing consulting firm, J.D. Power and Associates, is predicting that, with continuation of the present trend, the ‘annualized sales rate’ for June would be 12.5 million vehicles ; the lowest monthly sales since 1992.

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AP