Toyota's Car Sales in Japan Expected to Decline in 2005 for First Time in Three Years

TOKYO December 17, 2005; The AP reported that Toyota Motor Corp.'s car sales in Japan are likely to fall by 20,000 vehicles in 2005 to 1.74 million -- the company's first decline in domestic sales in three years -- as competition rises from lower-priced cars, a report said Saturday.

The business newspaper Nihon Keizai Shimbun said Toyota, which holds about 40 percent of the Japanese auto market, had initially projected domestic sales of 1.8 million cars in 2005.

Toyota is likely to miss that target as demand for major models, including its mainstay Corolla compact, has been hurt by competition from lower-priced cars such as mini-vehicles and used cars, resulting in its first domestic sales decline in three years, it said.

Toyota officials were not available for comment Saturday.

Toyota did not introduce any new models in Japan between April and September, which also contributed to the weaker sales, the newspaper said.

It said the company plans to remodel the Corolla and some other popular models next year and set a domestic sales target of 1.78 million cars.