Toyota has announced it will miss its target on the European market this year due to weak sales in Germany and lack of new models.
The Japanese carmaker is ready for a gloomy year as the company doesn’t want to participate in a price war on the German market and won’t reveal new models before the end of this year. Toyota has decided to keep its margin, while competition has decided to cut prices to maintain sales which slows down the carmaker’s sales. If the overall German market increased by 7%, Toyota recorded a 21% growth in April. In the long term with rising material costs, Toyota might be the wisest carmaker on the market.
However, price war is an explanation. Another factor is likely to be the lack of new models. The Avensis family car is waiting for its replacement, while the Auris struggles on a tough market. Next year promises to be better as the company plans to unveil three new major models, the iQ, the Urban Cruiser and the next-generation Avensis. The iQ will be launched in January, while the Urban Cruiser will follow in the first trimester. The next Avensis will likely hit the showrooms in the second trimester of 2009.
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