Toyota Shifts Focus to Emerging Markets

Toyota has set its sights on getting half of its sales from areas other than Japan, Europe and the United States, a senior company official said Monday. It currently gets only 40% of its sales from emerging economies.

“There is no such thing as being profitable in developed nations while not being profitable in emerging economies,” said Toyota Executive Vice President Yukitoshi Funo. He noted that sales have peaked in its traditional markets and emerging economies are the key to growth.

Toyota plans to increase sales of small cars like the Vitz compact in China, Brazil and the 10 ASEAN member nations. However, he ruled out entry into the extremely low-priced segment in Toyota’s new strategy. “We will not gain market share through a price war.”

Toyota sold about 3.7 million vehicles worldwide during the first half of the year. About 1.51 million units were sold in areas other than Japan, Europe and the United States.

Toyota projects global sales to increase to 7.29 million units this year from around 7.24 million last year thanks to an anticipated rise in demand from China and other emerging Asian economies.

NAGOYA (Kyodo)