Toyota Drops to Third in Global Vehicle Sales After Quake Disruption
Toyota’s global sales fell to 3.7 million vehicles in the first half of 2011, as production setbacks from Japan’s earthquake allowed GM and Volkswagen to overtake.
Toyota Motor Corporation reported global sales of 3.7 million vehicles in the first half of 2011, an 11% drop compared to the same period in 2010. The decline was driven by severe production disruptions following the earthquake and tsunami that struck northeastern Japan in March.
The production halt had its most dramatic impact between April and June, when Toyota’s global sales plummeted by 62%. With factories offline and supply chains fractured, the company struggled to deliver vehicles to dealers worldwide. This left Toyota trailing behind General Motors and Volkswagen in the global sales rankings for the period.
GM and Volkswagen overtake Toyota
General Motors recorded 4.53 million sales in the first half of the year, an 8.9% increase over 2010. Volkswagen also surged, reaching 4.13 million vehicles sold and moving into second place. Volkswagen has publicly stated its ambition to become the world’s largest carmaker by 2018, and this result brings it a step closer.
Analysts in Tokyo have suggested that even as Toyota’s production returns to normal, it will take several months for sales to recover fully, as inventory needs time to reach dealerships. The lag means Toyota may remain behind Volkswagen for the remainder of the year, depending on how quickly its supply chain stabilises.
Production recovery timeline
Toyota initially forecast that production would return to pre-quake levels between November and December 2011. The company later revised this outlook, bringing forward the expected recovery to September. Whether this acceleration will be enough to regain lost ground in the global sales race remains uncertain.
The impact has been particularly acute in key export markets. In the United States, Toyota’s July sales were down 22.7% compared to July 2010, reflecting ongoing shortages in dealer stock. The company’s global reach means that supply chain interruptions in Japan have had ripple effects across all major regions.
Competitive outlook for 2011
Market analysts expect Toyota’s full-year sales to remain below those of GM and Volkswagen unless production and logistics recover more quickly than planned. Volkswagen’s stated target of becoming the world’s top carmaker by 2018 now appears within reach, given its current momentum. For Toyota, the focus remains on restoring stable output and rebuilding dealer inventories worldwide.
For a breakdown of the world’s top-selling models, see Toyota Corolla Tops 2011 Global Sales as Asian and Chinese Models Gain Ground.
