Strong demand for new models, such as the redesigned Corolla, helped Toyota retain the sales lead for the first half of 2014.
While its lead has been narrowing, Toyota Motor Co. retained its crown as the world’s best-selling automaker during the first half of 2014.
The maker edged out rivals Volkswagen AG and General Motors in the global sales sweepstakes as demand for its cars, trucks and crossovers surged to 5.097 million between January and June, a 4% increase fueled by growth in markets ranging from U.S. and Europe to China and the Japanese home islands.
That was not only an all-time record but exceeded forecasts – while positioning Toyota to meet a goal of becoming the first automaker ever to sell 10 million vehicles in a single year. VW is also shooting for the 10 million mark, though preliminary data indicate it only tallied sales of 4.97 million vehicles during the first half, GM following at 4.92 million.
GM had held the sales lead for seven decades before losing it in 2008 to Toyota – regaining it briefly in 2011 when Toyota and the rest of the Japanese auto industry felt the impact of a massive earthquake and tsunami in northern Japan, followed by flooding in Thailand that affected key suppliers.
VW is hoping the news that its CrossBlue Concept will be assembled at its plant in Tennessee will help spur U.S. sales.
Toyota regained leadership in 2012 but had trouble meeting its ambitious sales targets as it became caught in the middle of a political dispute between Japan and China over ownership of a chain of uninhabited islands.
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Japanese makers have begun rebuilding momentum in China in recent months, but it remains well behind its key rivals with sales of just 1 million vehicles there in 2013. It has set a goal of doubling that volume, but market leader VW also has outlined major growth targets after hitting record Chinese sales of 3.27 million last year. GM, which has been vying for leadership in the fast-growing market, has laid out plans of its own to reach 5 million sales annually in China by decade’s end.
“China is the driving force of the global market, and the degree to which a company is focused on that region is linked to the global sales performance,” Yoshiaki Kawano, a Tokyo-based analyst at IHS Automotive, told the Reuter’s news service.
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While China is a major factor in Volkswagen’s rapid rise on the global sales charts, it has weaknesses of its own to deal with, notably in the critical American market. Its sales have dipped for two consecutive years and slipped again during the first half of 2014. The German maker recently outlined plans to boost its presence in North America, among other things by doubling the size of its plant in Tennessee to handle the addition of a much-needed new midsize crossover vehicle.
As for GM, it also has a lot riding on China, but it also remains dominant in the U.S. – even if Toyota has been narrowing the gap in what is now the world’s second-largest automotive market. GM has surprised analysts by maintaining positive momentum despite ordering a record number of recalls so far this year. That has seriously hampered its earnings, however. GM is also struggling to rebuild its position in the European market.
Despite its strong performance, Toyota declined to comment on its first-half performance. The maker has always put on a humble face when discussing sales leadership, insisting volume is driven only by exceeding customer expectations. That said, CEO Akio Toyoda has set an aggressive sales target of topping 10 million for the company founded by his grandfather.
(Click Herefor a look at the newly updated Toyota Sienna minivan.)