Toyota Says U.S. Sales Rebound Won’t Begin Until September
Toyota Motor Corp., replenishing auto inventory thinned by Japan’s earthquake in March, said it’s not likely to begin posting U.S. sales gains again for at least two more months.
Sales for Toyota, Asia’s largest automaker, will fall again in July after dropping 33 percent in May and 21 percent in June, Bob Carter, Toyota’s group vice president for U.S. sales, said yesterday. Supplies of cars and light trucks are still below average, and it will be weeks before dealers are fully restocked, he said.
“Our market share will begin recovering this month, but it will be September or maybe October before we’re really growing again,” Carter said in an interview in Cle Elum, Washington. “We were in too deep a hole, and we’re still digging out.”
Japan’s magnitude-9.0 earthquake and tsunami disrupted assembly operations for Toyota and Honda Motor Co. as a result of shortages of parts and electricity. Toyota’s U.S. sales slid 4 percent in the year’s first half, while the total market gained 13 percent, according to Autodata Corp., a Woodcliff Lake, New Jersey-based research company.
Edmunds.com, an automotive pricing and data company in Santa Monica, California, said today Toyota’s sales will likely fall 21 percent in July from a year ago, while TrueCar.com, also based in Santa Monica, estimated the Toyota City, Japan-based company’s sales will drop 33 percent. Both released their estimates in e-mailed statements.
Automakers are scheduled to report U.S. sales for July on Aug. 2. Toyota has said most of its production in Japan and North America will recover by September, reported Bloomberg.
The company’s first-half market share was 12.8 percent, down from 15.1 percent a earlier, according to Autodata.
“Inventory issues are not seriously holding back Toyota anymore, and a 25 percent month-over-month boost in incentives are helping the company finally pick up the sales momentum that it needed,” Jessica Caldwell, senior analyst at Edmunds.com, said in an e-mailed statement today.
“But with sales expected to be off more than 20 percent compared to July 2010, Toyota still has a long way to go,” she said.
While U.S. auto demand should continue to recover this year, sales aren’t growing as fast as Toyota expected because of weak consumer confidence, Carter said.
“That’s the most important thing for us, and right now the consumer doesn’t seem to be that confident about jobs and the overall economy,” he said.
Toyota’s American depositary receipts, each representing two ordinary shares, fell 74 cents to $81.43 at 4:15 p.m. in New York Stock Exchange composite trading. The company’s U.S. sales unit is based in Torrance, California.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →