First Quarter Charge From Toyota

While the company’s Formula One efforts may not exactly be stirring this year, in the sales charts race Toyota is at the sharp end of the grid, recently posting a double-digit gain in its annual profit figures. Parent company Toyota Motor Corp., which overtook American automotive giant Ford Motor Co. in 2003 to become the world’s second-biggest automaker in terms of global sales, forecasts another strong year as it projects a 4.5 percent rise in sales or over seven million vehiles to be sold worldwide by the end of 2004. Toyota includes in the forecast sales from subsidiaries Daihatsu Motor and Hino Motors.

In a news release, TMC executive vice president Ryuki Araki expressed pleasure over the company’s strong performances in all the markets they are competing in. "Every global car we’ve rolled out has been a hit. I’ve never experienced anything like this before," Araki said.

Even if currency fluctuation — particularly a stronger yen — is expected to cap growth figures this year, industry analysts believe Toyota is on track to meet its target of taking a 15 percent slice of the world’s automobile market pie in the next decade, possibly becoming the biggest carmaker worldwide by then.

Araki said that in the US (considered as the most important car market), sales were up 13 percent in the first quarter of 2004, adding that Toyota has managed to keep sales incentives at a relatively low $960 per car compared to $3,400 to $4,000 for the US’ Big Three manufacturers — General Motors, Ford and DaimlerChrysler. Analysts also believe that even a less-than-spectacular performance in the US could be offset by strong sales in home market Japan — particularly with high-end models — and increased sales in other parts of Asia and Europe.

Locally, figures indicate the same story as Toyota Motor Philippines emerges as the best-selling automotive brand in the country, registering the highest sales output in the local market. In a separate news release, company personnel cited figures by the Chamber of Automotive Manufacturers of the Philippines, Inc. which show TMP as the top-performer for the first quarter of the year with 2,471 units sold in April alone. Total sales for the year is 9,932 units, or a 12-percent growth when compared to figures last year of the same period. With a 40-percent market share in April, TMP claims this is the highest ever figure achieved by an automotive company.

In the passenger car segment, Toyota maintains its top spot with 1,244 units sold in April, resulting in an impressive 55 percent market share and a huge 81 percent increase when compared against last year’s figures. The company managed to sell a total of 5,118 passenger cars so far this year. Toyota credits the Vios, Altis and Camry as the best-selling models in the country.

Meanwhile, Toyota continues to top the commercial vehicle charts as well, with the company selling 1,277 units in April and grabbing a dominant 31-percent market share.

As expected, TMP execs welcome the result, apparently pleased that amid a declining market which could have been adversely affected by recent political events, Toyota managed to post a significant growth. TMP first vice president Danny Isla asserts that car buyers tend to be more discerning in their vehicle purchase choices when the economic climate is critical.

"And Toyota has the characteristics that define what value-for-money is all about," Isla says.