Toyota holds on to top spot, but VW catches up

Record sales in July have meant that Toyota has cemented itself as the most popular brand in Australia for 2014. Australians bought almost 16,500 Toyota vehicles in July, while no other competing brand reached 9000 sales.

Eight Toyota vehicles led their individual market segments in July – Yaris, Corolla, Camry, 86, LandCruiser 200, HiLux 4×2, HiLux 4×4 and HiAce bus. So far this year, Toyota dealers have delivered more than 117,500 vehicles, resulting in a margin of more than 51,000 sales over its nearest rival.

Toyota Australia’s executive director sales and marketing Tony Cramb says Toyota and the industry are benefiting from continued strong demand for new vehicles. “New-vehicle sales remain close to record levels, which is extremely encouraging for the industry’s prospects in the second half of the year,” Cramb says.

However, it is clear that Volkswagen is closing the gap with Toyota, globally. Official figures show that Volkswagen has closed to the gap to global sales leader Toyota in the first half of this year, and may overtake the Japanese company by the end of 2014.

The Japanese auto giant on Tuesday reported a 4.6% rise in profit to US$5.72 billion (A$6.17 billion) for the April-June quarter, as softness in markets such as Thailand, Japan, India, Indonesia and Brazil offset strength in the US and Europe. However, Toyota on Tuesday trimmed its global group-wide sales forecast to 10.2 million vehicles, a reduction of 110,000 vehicles.

Deliveries for Toyota, including its Hino Motors (7205) and Daihatsu units, climbed 3.8% to 5.1 million vehicles in the first half. By comparison, Volkswagen has reported sales of about 5.07 million units, including results for its heavy-truck units.

Toyota Australia product public relations manager, Steve Coughlan, told Autotalk, that being the top seller of cars has never been a focus for Toyota. “Our goal has always been to deliver cars that meet the needs and wants of local motorists. We are firmly of the view that, to the extent we are successful in achieving that goal, then sales will follow.”

Toyota and Volkswagen both have forecast more than 10 million deliveries for 2014. Toyota sold 9.98 million vehicles last year to lead the industry for the second consecutive year, followed by Volkswagen’s 9.73 million and GM’s 9.71 million.

Introductions of crucial revamped models by Toyota and Volkswagen will help determine which automaker finishes the year on top. For Volkswagen the introduction of a large 7-seater SUV in the US could be the answer, there has been no confirmation that the US built SUV will be brought ‘down under’. Inspired by the large CrossBlue concept, the new medium SUV will be aimed primarily at North America.

Volkswagen is also expected to unveil the updated VW Polo GTi model at the Paris motor show in October before it goes on sale in Australian showrooms early next year. While the new Polo, which comes out later this month, will be sold at an unprecedented price of $15,990, to compete with the Japanese and South Korean competitors in the Aussie market.

“The $15,990 drive-away price for the new generation VW Polo hatch is the same cost to the dollar as the special deals on the top-selling Mazda2 and Toyota Yaris, only $500 more than a Holden Barina and $1000 more than a Hyundai i20 three-door. The only catch: the $15,990 price is for the manual model, automatic transmission adds an unusually high $2500, to $18,490 drive-away,” according to CarsGuide.

When Autotalk asked Coughlan, what does Toyota attribute to the increase in sales numbers in the first half of 2014, he notes: “Sales this year are running close to the all-time record achieved in 2013. Many factors are involved, including value. For example, Corolla’s starting price of A$19,990 RRP (before on-road costs) is the same as it was 20 years ago, despite advances that have made it safer, more economical and better equipped.”

He also points to a report issued this week, which said new-car affordability has hit a 38-year high – the best since the mid-1970s.

“For this year, Toyota is forecasting industry sales of around 1.1 million vehicles in Australia, similar to last year’s all-time record. Toyota itself is on track for its 12th consecutive year of market leadership with another total in excess of 200,000 sales,” Coughlan adds.

In terms of what is coming in 2015, Coughlan did not reveal any specific details of what Toyota has planned, but he did confirm that Toyota is planning several new-model launches including the locally built Camry. “We will also benefit from a full year of new-generation Kluger sales, and we have plenty of other product news in the pipeline, however, it’s a little early to tell our competition all our plans,” he adds.