The largest Japanese automaker, also the biggest in the world, has failed to deliver a crucial sales goal for 2014 in China and now has moved to announce a conservative sales target for 2015.
Toyota Motor Corp is forecasting its rising sales might reach only half the pace this year after last year’s target was impossible to achieve on slowing delivery rates seen during the last months of the year. Additionally, the Japanese automaker is pressured by its dealer sales network in China to provide compensation as the retailers incurred heavy losses because of lackluster sales. Japan’s top carmaker announced today that its final 2014 tally reached only around 1.03 million vehicles in China, rising 12.5% from the figures recorded two years ago – well short of the forecast for more than 1.1 million. This year, the automaker aims to reach again the sales target of 1.1 million vehicles, which should translate to a 6.8% delivery rise.
Last year, Japanese carmakers operating in China, the world’s largest auto market were challenged from two directions – the second-biggest economy in the world had seen a slower development pace and mounting political tension between Beijing and Tokyo. The overall Chinese auto market rose around 7% last year, with the growth figure from 2013 essentially halved. Toyota’s issues are now aggravated by last week’s letter from the China Automobile Dealers Association (CADA), speaking for more than 500 Toyota dealers, demanding 2.2 billion yuan (232 million pounds) in subsidies.