Toyota Misses their Vehicles Sales Goal for 2014
Toyota Motor Corp. will likely miss their 2014 objective of selling around 1.1 million vehicles in China due to a faster than anticipated economic slowdown that resulted in a price war in the auto market. Toyota along with its two Chinese joint ventures will miss their goal and is selling more than 1 million vehicles.
The missing of the goal revealed a continuing difficulty for Japanese automakers penetrating China even when a good diplomatic relationship is recovering from a recent territorial spat which turned Chinese consumers backs against Japanese products. Plus several matters and an increase in models from premium German brands that are reasonably prices are also within reach against mainstream Japanese cars. Toyota will then resort to a fire sale to hopefully meet their dales target but is against their philosophy of to produce and sell as the market needs but not more, plus Toyota is trying to stay away from price wars as much as they can.
Since 2010 the Japanese carmaker aimed unofficially for 1 million vehicles and came close by selling 917,500 in 2013. But due to the economic growth nearing the slowest rate, Toyota decided to revise its sales plans since the third quarter. Another reason for the slow sales is their rivals such as Nissan Motor Co. and Honda Motor Co. is also competing against premium German brands like BMW.