Toyota Gambling on China for Sales Reign

SHANGHAI - July 25, 2007: General Motors Corp has been narrowing its sales gap with Toyota Motor Corp, where in the second quarter Toyota Motor Corp outsold General Motors by only a mere 40,000 units. GM sold 2.405 million vehicles globally, compared with Toyota's 2.367 million, in the second quarter, while in the first automaker Detroit-based automaker sold a total of 90,000 vehicles less than that of Toyota. In addition, Toyota is experiencing a decline of 9%-12% in Japan month by month during last three months ending on June 30.

Quake won't affect Toyota sales target
Toyota has reaffirmed its global sales target of 9.34 million vehicles for this year despite worries about plant closures after a recent earthquake in Japan. The automaker aims at an increase of 6% of its sales target compared with the same period last year.

Toyota has already resumed production on most of its auto assembly lines at its one dozen factories in Japan and will restart the remainder later this week, company spokesman Tomomi Imai said.

Analysts say the strong growth gained by Toyota on the emerging market in Asia and Latin America is more than likely to make up for the decline caused by the quake and a sluggish market in Japan.

Aiming at China for sales reign
The two automakers are both seeking to boost sales in emerging markets especially in China. It is because a relative low sale in the Chinese market that made Toyota lag behind GM in terms of full-year sales in 2006.

Statistics from China Passenger Car Association show that GM's joint venture in China-SGM, sold 221,755 vehicles in the first half year, taking the sales reign year to date in this market. Though Toyota's sales figure is 111,541 for the period, Toyota is expected to catch up with GM relying on its Corolla, which is battling in the same range market with GM's Buick. Toyota aims to sell 260,000 vehicles in 2007 and experts believe Toyota is set to become the sales crown if it achieves its target in China.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html