Tough Auto Market Hurting Vehicle Sales of Auto Companies
Toyota Motors warned consumers on tougher competition in China as it raised its forecast for sales in Japan its quarterly profit that beats all estimates of financial analysts. The company’s net income from April to June period went up 646.4 billion yen exceeding the 617.1 billion yen the average estimates analysts gave and compiled. Operating profits trailed estimates and Toyota cut their full year delivery by 30,000 units or down to 10.12 million as annual profit forecast has remained unchanged.
Toyota outpaced the industry in China and boosted its deliveries up by 12 percent in the largest auto market even as competitors such as BMW revised its profitability goals even with the slow demand of luxury vehicles. Furthermore a weaker yen soften the blow from declining deliveries in Japan and in Southeast Asia helped Volkswagen inch ahead by sales. As sales expenses gone up so did sales prices, which came down slightly making business in China very difficult as, business environment started to get tougher.
Toyota stated that last week it sold 5.02 million vehicles in six months through June trailing behind the 5.04 million vehicles that Volkswagen reported a few weeks earlier and deliveries declined by 1.5 percent for Toyota and 0.5 percent for Volkswagen. Even if Volkswagen surpassed Toyota based on sales for the first half of the year, Toyota still leads the industry based on profits.