Toyota expects sales of new Corolla to increase 9% in China in August

On September 1, Toyota Motor announced that its sales in China reached 78,500 vehicles last month, an increase of 8.9% year-on-year, mainly due to strong demand from the new Corolla market. The cumulative sales volume in the first eight months increased by 9.7%, but there is still a long way to go before the target is established. The company expects new sales of Ralink new vehicles will start this month.

New Corolla Helps Toyota Retreat

Toyota Motor Corporation stated that in August 2014, the joint venture with China had sold a total of approximately 78,500 vehicles in the Chinese market, which was an increase of 8.9% from 72,100 vehicles in August 2013. This figure is also higher than the 75,300 vehicles in August 2012.

Since September last year, Toyota has recovered from the frenzy of Japanese car sales caused by the Sino-Japanese Diaoyu Islands dispute, and has continued to grow for nine consecutive months since May this year. However, since June, it has continued to decline for two consecutive months. From June 76, the number of vehicles dropped by 7.6% year-on-year to 71,000 units from 76.900 units. In July, it dropped slightly by 1.1% year-on-year to 74,800 units from 75,600 units.

For the June sales decline, Toyota explained that FAW Toyota Corolla was upgraded on June 19th, resulting in a decline in sales of old cars and insufficient new vehicle production. And in July's decline, Toyota is attributed to the Crown and Highlander will be updated. Looking at the recent rapid decline in the sales of Japanese cars or models, the official statement basically points to the transition period between the replacement of new and old models.

However, this August sales growth in China has also been affected by new cars. Last month, FAW Toyota New Corolla took a hit in the Chinese market, driving sales growth. Toyota will also place its hopes on the North American version of Carolola Raying, which will be released on July 28 and will officially go to stores in August.

From January to August, Toyota accumulatively sold 619,200 cars in China, which was a year-on-year increase of 9.7% compared with 564,600 in the same period of last year.

It is still difficult to achieve year-round goals

Throughout 2013, Toyota’s total sales in China reached 917,500 units. This year, Toyota has set a goal of selling 1.1 million cars throughout the year, an increase of 12% year-on-year. Toyota has not been able to surpass the annual sales volume of one million vehicles in China. The relevant targets set up from 2010 have been delayed due to factors such as the Diaoyu Islands conflict.

However, in the first eight months of this year, Toyota only completed 56.3% of its annual target. Although the autumn “Golden 9 Silver Ten” and the year-end flushing will exceed the monthly sales volume in the first half of the year, nearly half of the sales volume will be completed within the next 4 months and will still constitute an adjustment for Toyota.

If the conversion is carried out, from September to December, Toyota needs to sell an average of 120,200 cars per month in China to reach its annual sales target of 1.1 million vehicles. According to the data provided by Gasgoo Automotive Database, Toyota’s monthly sales in China in the past two years were highest at 108,000 vehicles in December 2013. Other time even the “Golden 9 Silver 10” in 2013, even with Japanese cars’ rebounding rebound momentum. Toyota's sales in China are still only about 70,000 to 80,000 vehicles.

According to another algorithm, Toyota will need to accumulatively sell 480,800 vehicles in China in the four months after this year, which is a 36.2% year-on-year increase from the 352,900 in the same period of last year. In other words, Toyota will continue to reach nearly 40% year-on-year growth in China in the coming months.

In addition, China’s recent anti-monopoly turmoil has engulfed a number of industries, including autos, and Toyota and other automakers have been interviewed by the National Development and Reform Commission, and then lowered the prices of spare parts or vehicles. Although Toyota currently only deals with the luxury brand Lexus, it has been smashed by an anti-monopoly sledgehammer. This may have a detrimental effect on the brand image and even sales volume of foreign car manufacturers in China, or it may increase Toyota’s annual target. obstacle.

Toyota’s China spokesperson Takanori Yokoi claimed that the company’s goal of maintaining 1.1 million sales is that Toyota is still on track to achieve its goal. He said: "We do not have any plan to reassess or revise this year's sales target." Toyota said that starting in September, Ralink will exert its force and it is expected to help the company reach its sales target in China for the whole year.