Toyota Sales In China Surge By 14%

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The current global scenario for automobiles is gloomy and though most are facing shortfall in sales Toyota is an exception. This is because automobile sales of major brands like Ford, General Motors and even Volkswagen in world’s largest market of China fell but the sales of Toyota cars has surged by 14 %. The Japanese car maker which has faced diminishing sales in United States has now predicted better growth in China after the surge in demand for its automobiles. The market of China holds great importance for automobile industry and car brands across the globe depend on its people that are using their wealth for acquiring their first car or upgrading.

In recent years the economic slowdown and ongoing US trade war has led to reduction in demand for new automobiles. But luckily Toyota has managed to buck the trend due to a combination of factors like increased focus by the firm on Chinese market as tariffs have affected sales of some of its rivals. When the trade war began between US and China the latter increased tariffs on all automobiles made in America and reduced the tariff on imports from Japan.

This led to cars made by majors like BMW and Daimler in America turning expensive for Chinese residents. Though China has now reduced the tariffs on US automobiles after the short term agreement pending a formal trade deal in future the ongoing uncertainty has led to growth in Toyota sales. Demand for its Lexus range of luxury cars has increased and it had done better than other Japanese carmakers Nissan and Honda as the former’s sales increased by just 3 % while the latter fell by 1 %. To boost its market in China Toyota is aiming to increase its production of electric and hybrid cars in the coming decade.