Toyota eyes world car sales crown

Toyota sold 4.97 million vehicles globally in the first six months of this year, a strong result that could see the Japanese firm regain its crown as the world’s top car maker from General Motors.

The number underlines Toyota’s powerful rebound from a period of dismal sales, and the resilience of its brand as it gains traction in new markets such as China and south-east Asia while clawing back lost market share in the US

Production was hit by the quake and tsunami in north-eastern Japan last year and then by flooding in Thailand, which is an important production base. Before those disasters, its sales were dented by massive US recalls, totalling more than 14 million vehicles since quality control problems emerged three years ago.

GM, which led world car sales last year, plans to release first-half global sales on August 2. Its vehicle sales probably exceeded the 4.56 million it clocked in the first half of last year, likely to be about 4.7 million, given its strong performance in China and the US, its two largest markets.

GM had held the global sales crown for more than seven decades before losing it to Toyota in 2008 as GM’s sales dived while it headed toward financial ruin. In 2009, GM filed for bankruptcy protection, needing a US government bailout to survive.

Volkswagen AG earlier this month said it sold 4.45 million vehicles in the first half. It came second after GM in global vehicle sales last year.

GM trailed Toyota for the first quarter of this year at 2.28 million cars and trucks across the globe, while Toyota sold 2.49 million. Toyota has forecast that it will sell 9.58 million vehicles this year.

Chizuko Satsukawa, auto analyst for Standard & Poor’s in Tokyo, said Toyota faces intense competition not only from GM and Volkswagen but from other firms including Hyundai of South Korea.

Toyota is counting on its next surge of expansion in south-east Asia, following other high-growth markets such as China, India and Brazil, she said.

“Toyota’s rebound is impressive. But what’s even more important than the numbers is profitability.”

Ms Satsukawa said Toyota was at a disadvantage because of a strong yen, compared to European and South Korean makers that have the perk of a weak currency that raises earnings from exported vehicles. That makes gaining sales numbers critical for Toyota, she said.

Doing well in North America was also critical because that rich market is where many companies, including Toyota, can rake in hefty profits.

After the recall fiasco, Toyota president Akio Toyoda acknowledged that the firm needed to go back to its roots and strengthen quality rather than pursuing rapid growth at any cost.

In recent months, he has changed his tone slightly, promising growth for Toyota, although he has stressed it will do so with good products.