Toyota Backs Away From 15 Percent Global Market Share Goal
Toyota President has renounced his firm’s 2002 goal of attaining 15 percent global market share by around 2010. “Our president doesn’t feel comfortable upholding figures as our vision,” an anonymous Toyota source tells Automotive News [sub]. “It is not the Toyota way to aim for 15 percent or 10 percent.” Which makes sense, considering Toyota is predicting a nearly 13 percent drop in global sales in the fiscal year ending March 31. Indeed, AN’s source blames the market share goal for Toyota’s current overcapacity struggles. Which indicates that the big T may have recognized the role of number-chasing in GM’s demise. If nothing else, its executives certainly understand the importance of emerging markets in driving sales. Perhaps because Volkswagen is creeping up on Toyota’s market share on the back of its Chinese and Brazilian business. You gotta dance when the floor keeps getting hotter.
More by Edward Niedermeyer
Comments
Join the conversation
To me Toyota has a problem in emerging markets: expensive cars. Yeah, they're refrigerator reliable, but if for example they use the business model they employ here, they won't grow much. Chevy is number one here because it has: the lower price, most features, relatively attractive cars. In one word, value. Toyotas, instead, are expensive and seen as status symbols. Even luxury cars :rolleyes: They need affordable, full of value/content cars. And please, pepper them with some style/beauty. Brazil?, can they sell a car like the Palio or Mille or Gol at those prices? Flex -> Ethanol or CNG or Gas fueled? Cheap and easy to fix? If not, they're toast. Period. Fiat, VW, Ford and GM will eat their lunch there.
It has nothing to do with being arrogant. They would have a shot at it if the American and Japanese market didn´t drop so much and the Chinese market didn´t grow so much.
As relates to "down here", Stingray basically gets it right. They (toyota) have no real entries into what sell here. OK, the market is changing and all, like 5yrs ago most entry level cars were sold w/ no power anything, no air con, and apparently cars like that are now "only" 50% of sales. The news for more than 4 yrs now is that Toyota will be selling the Yaris here. Hummmm, ok they'll try at USD 15K and that will get them nowhere. Perennial top sellers here are the VW Gol, Fiat Palio and Uno, which all sell at well over 20K units a month. Then you step down to the GM Classic which gets in about 15k sales/month. And from there on down it 's less than 10k a month. Toyota's best seller here? The Corolla, seen as a semi luxurious car sold for over around USD 30k. Perennial second in its market, selling between 1.5 and 2k a month. And whoever said VW is selling well here? Well, they're second (after Fiat), but little by little, but surely, loosing market share every month. But since this will be a record year, they'll have a record year in sales. But market share will be smaller than last year's.