Toyota Predicts Global Sales to Drop By Whopping 22%, Profit By 80%

toyota harrier 2021-1-2

Thanks to the ongoing crisis that has gripped the whole world, even Toyota, the Japanese carmaker giant, has set very low sales projections due to the ongoing situation

The ongoing situation has really made life hell for every carmaker. Right from low volume players to giants like Toyota and Volkswagen, everyone has reported a huge drop in sales due to the circumstances that prevail in the market.

The drop in the sales can be largely attributed to most prospective buyers deciding to saving funds to use for basic needs and medical exigencies. Due to this, the companies around the world have already lowered their sales targets by a huge margin.

Even Toyota, which is one of the largest carmakers in the world, has set really low targets for this year. Toyota Motor Corporation has reportedly said that it is projecting a drop of 22 per cent in its sales this year. Toyota is not the only company that is projecting such low sales figures. Many other carmakers, who have been highly successful, don’t have much hopes from this year.

2019 Toyota Corolla Touring Sports Front

This is owing to the minimal demand owing to the reasons mentioned above. Speaking on this, Akio Toyoda, President, Toyota Motor Corporation, has said, ” We anticipate a massive decline in sales, but we continue to hope and remain optimistic. We hope to become leaders in the economic recovery of affected countries “.

As per the company, the annual profit for the ongoing financial year will be in tune of 500 billion yen, which is 80 per cent lower than 2.44 trillion yen earned last fiscal. In terms of sales, the company projects the retail of 8.9 million units, which will be lower to the 10.46 million units sold in the last fiscal.

Among the most challenging markets for the company is North America, where it is among the market leaders. In March, sales of Toyota in North America fell by 8 per cent but the company still stays focussed on bolstering its position by allocating funds for investment and R&D.