Toyota Motor Corp., which has been hurt in China by a failure to anticipate the demand for affordable, no-frills cars, said it plans to increase the proportion of smaller cars it sells in the country.
Beijing-based spokesman Niu Yu said Tuesday the Japanese car maker is taking the step to improve sales.
Chinese consumers have been snapping up smaller cars, especially after the government in January cut sales taxes on cars with engines of 1.6 liters or smaller. However, Toyota, whose product mix has been focused on larger cars, reported flat China sales in the first half from a year earlier.
Toyota’s sales have since picked up, rising 43% in August from a year earlier to 67,000 units, Mr. Niu said. Sales in the January-August period rose 9% from the same period last year to 415,000 units, he said.
The sales slump has been a blow to the world’s biggest auto maker because China is the only major global auto market still growing and its major rivals have reported sharp sales gains.
In addition, Toyota plans to increase the number of dealerships it has in China to around 590 by year-end from about 500 in early August, Mr. Niu said. It also plans to increase the number of China dealerships for the Lexus, its premium brand, to 60 by the end of the year from 50 in early August, he added.
Source:[online.wsj.com]
{ 0 comments… add one now }
Leave a Comment