Toyota Motor Corp kept its tittle as the worlds biggest car manufacturer, but projected a sales drop in 2015 on Wednesday, citing lower demand for its vehicles in Japan and Indonesia among other countries.
The Japanese carmaker delivered 10.23 million vehicles last year, 3% better compared to 2013. Toyotas performance was also above Volkswagens sales, which went up 4% year-on-year to 10.14 million units. General Motors came in third with an increase of 2% to 9.92 million vehicles in 2014.
However, Toyota projected its first annual sales decline in four years and estimated deliveries of 10.15 million units, including its Hino and Daihatsu brands. The 1% fall would expose the companys position as top manufacturer, which Toyota retained for thee consecutive years, as analysts have predicted that Volkswagen would continue to report increased sales.
The biggest contributor to the decline is Daihatsu, the company said. The brand is projected to report 15% less sales in Japan, after the country raised its consumption tax in April. Overall Daihatsu sales would fall 13%, while vehicles wearing the Hino brand would edge up 3%, Toyota estimated.
The company is not expecting sales decline across the board, in China, the worlds largest automotive market, sales are expected to score a 6.6% increase to a record of 1.1 million vehicles, but still down from the 13% growth reported last year. US sales would also edge up 3%, but sales in Brazil are projected to fall, while Europe numbers stay unchanged, Toyota said.
Last year Toyota sold slightly more than 1 million vehicles in China, which is far less compared with Volkswagens 3.68 million units. General Motors reported 3.54 million sold cars and trucks in the country.
“My guess is that at some point VW does pass Toyota, simply because VW is a lot bigger than Toyota in China,” said Christopher Richter, an analyst at CLSA, cited by the Wall Street Journal.
Mr. Richter also said that Toyota might not be able to benefit from the picked-up demand for gasoline-powered vehicles in the US, spurred by plunging oil prices, because of the companys limited output.
Toyota projected that it would manufacture 1% less vehicles in 2015 to a total of 10.21 million, including a 6% decrease in it domestic production.
Toyota Motor Corp lost 0.93% on Wednesday and closed at JPY 7 588 in Tokyo, marking a one-year increase of 22.27%. The company is valued at JPY 26.18 trillion.
According to the Financial Times, the 24 analysts offering 12-month price targets for Toyota have a median target of JPY 8 625, with a high estimate of JPY 10 000 and a low estimate of JPY 7 000.
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