Despite recording a remarkable fall in overall sales number, Toyota Motors, quite surprisingly earned a record quarterly profit for the first quarter of the fiscal year 2016. Owing to some cost cutting measures and increased sales units caused the Japanese carmaker to rake in some good North American currency which resulted in higher profits in relation to the weakening Japanese currency, Yen. And furthermore the company signalled towards more profits which will be the result of high number of sales in North American car market.
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By selling 7,29,000 vehicles in the first quarter of the fiscal year 2016, in North America, the company recorded the increased sales by 19,000 units if compared to the first quarter of the last fiscal year. And the net profit took a high jump and was recorded as 25.7% more than last time which is quite huge. Toyota’s truck sales got increased by a rate of whopping 18% while on the other hand, the car sales recorded a decrease of around 6.2% which is a big drop and alarming as it threatens to harm company’s overall reputation because it is a widely known fact that the sales of SUVs, Minivans, pickups are on a boom worldwide. Although, Toyota has a huge line-up of passenger cars to its credit, but still the overall sales of Toyota vehicles increased only by a mere 3.7% while on the other hand other biggies are recording around 10% in their vehicle’s sales.
However, Toyota is very soon coming with the facelifted version of the Lexus RX crossover, expected to arrive later this calendar year. The vehicle was remodelled considering the fact that the sales of the previous generation of the vehicle were on a constant decline and this modification of the car is expected to earn back the lost respect.
In china, the Japanese car companies have always faced quite a bit of struggle. The anti Japanese rallies in China in the year 2012 have affected the Japanese automakers, including Toyota to a great degree. China is the world’s most populated country and the fast growing economy has produced a lot of opportunities for the car companies who are starting to see china as a very ripe market. But, the current political scenario in the country is affecting the sales of Toyota vehicles in a big way. But slowly the Japanese carmakers have started to gain some numbers back and sales have shown a good promise that things will be normal soon enough as the market share of the Japanese carmakers in the Chinese market segment is close to 20% which was seen for the last time before 2012 when the general relations between the two largest economies were quite better comparatively.
However the other factor to notice is that the Chinese economy is not doing very good at the moment and this is affecting the sales of cars as well. In order to keep up with the good sales numbers, the car makers are seen cutting down on the prices of their vehicles.
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I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.
Tagged: Toyota Cars
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