Toyota dealers moved more than 35,000 Camry models off lots in March.

Toyota Motor Sales (TMS), U.S.A. today reported March sales results of 187,000 units, an increase of 35% compared to the same period last year, on a daily selling rate (DSR) basis.

On a raw volume basis, unadjusted for 26 selling days in March 2010, compared to 25 selling days in  2009, TMS sales were up 41% for the month.

Based on preliminary numbers, this moves Toyota into the Number Two spot on the sales chart, between General Motors Company at 189,000 and Ford Motor Company at 179,000 vehicles, which excludes 5,237 units, an 18% decrease from March 2009, from soon-to-be-sold Volvo. Only the Ford F-Series pickup truck outsold the Toyota Camry.

There were large differences in fleet sales, however, with Toyota’s accounting for 9% while the GM and Ford fleet mixes were at 30% of total sales. Generally speaking buyers of vehicles from the Detroit Three are penalized because residual values are lower because of fleet sales, which raises the total cost of vehicle ownership.

A question remains as to whether Toyota is pulling sales ahead with incentives, which expire next week, or just recovering from pent-up demand in the marketplace because of the stop sale of the majority its vehicles in February and from the massive amounts of negative publicity resulting from ongoing recall and quality problems.

Moreover, depending on whose numbers you use, Toyota’s per vehicle incentive costs remain at least $1,000 lower than those of the Detroit Three.

“We are standing by our cars, and we’re grateful that our customers are standing by Toyota,” said Don Esmond, senior vice president of automotive operations for TMS.

The company is reviewing its next marketing options. “We will take the necessary steps to keep our dealers in the marketplace,” Esmond said.    

Toyota Division recorded March sales of 166,644 vehicles, an increase of 35% compared to the year-ago month, on a DSR basis. On a raw volume basis, Toyota Division sales were up 41% over last March. Lexus reported sales of 20,219 units in March, up 36.5% over March 2009, on a DSR basis. In volume Lexus Division sales were up 42% over the year-ago month.

For the first quarter, TMS reported sales of 385,686 vehicles, an increase of 8.7% over the same period in 2009, on a DSR basis. With 74 selling days in the first quarter of 2010, compared to 75 selling day in the first quarter of 2009, sales were up 7.2% on an unadjusted raw volume basis.

Toyota Division

Toyota Division passenger cars recorded March sales of 94,221 units, an increase of 24% over the same period last year. Passenger car sales were led by Camry and Camry Hybrid which posted combined March sales of 36,251 units, up 35 % over the year-ago month. Corolla posted sales of 29,623 units for the month, up 28% over last March. The Prius mid-size gas-electric hybrid posted March sales of 11,786 units, up 27% over March 2009. Venza posted a best-ever March, recording sales of 5,227 units, up 36% over the same period last year.

Toyota Division light trucks posted sales of 72,423 units in March, an increase of 54 % over last March. Light truck sales were led by the RAV4 compact SUV which recorded an all-time best-ever month with sales of 25,781 units, up 108 % over the year-ago month.

With a best-ever March, Highlander and Highlander Hybrid posted combined sales of 11,953 units for the month, up 113% over March 2009. The new 4Runner reported March sales of 4,108 units, up 139% over the year-ago month. The Tundra full-size pickup posted March sales of 10,785 units, up 87% over the same period in 2009. The Tacoma mid-size pickup reported sales of 9,441 units for the month.

Scion

Scion posted March sales of 3,511 units. The xB urban utility vehicle led the way with sales of 1,630 units. The tC sports coupe posted March sales of 1,118 units. The xD reported sales of 763 units for the month. Scion models were down 25% – 30% and were not subject to incentives. Several new models are upcoming.

Lexus Division

Lexus reported passenger car sales of 10,060 units in March, up 34.1% over the year-ago month. Lexus passenger car sales were led by the recently revised ES 350 entry luxury sedan, which posted sales of 3,860 units, up 15.1% over the same time last year.

The IS luxury sports sedan reported combined sales of 3,137 units, up 24% over March 2009. The HS 250h luxury hybrid sedan recorded March sales of 1,494 units.

Lexus light trucks recorded sales of 10,159 units, up 39% over last March. Lexus sales were led by the RX, which posted combined March sales of 8,060 units, up 25.5% over the year-ago month. The all-new GX mid-size luxury utility vehicle reported sales of 1,785 units.

TMS Hybrids

TMS posted March sales of 16,714 hybrid vehicles. Toyota Division posted sales of 13,929 hybrids for the month. Lexus Division reported sales 2,785 hybrids in March.