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Old 22nd January 2015, 10:31   #1
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Default Toyota beats VW as world's largest car maker in 2014

Japanese car maker Toyota continues to hold the title of world's largest car maker for the third year in a row. The Volkswagen group has more brand names/subsidiaries under its belt, but Toyota, combined with its subsidiaries Hino Motors and Daihatsu, recorded sales of 10.23 million units. The group saw a growth of around 3% with SUV sales in the USA contributing greatly to the cause.

Volkswagen reported sales of 10.14 million vehicles with a growth of 4.2%. The German car maker has recognized the potential of the SUV market and is working towards the expansion of its portfolio in the segment. Currently, it only offers the Tiguan and Touareg. While Toyota managed to ward of VW, analysts say the brand is not concerned with numbers and is looking at better profitability. In fact, Toyota itself expects 1% decline in sales this year due to a sales slump in its home market of Japan.

Volkswagen along with third placing General Motors will be adding more factories to boost production. Toyota on the other hand, has no such intention for at least another year.

Source: Bloomberg

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Old 22nd January 2015, 11:36   #2
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Default Re: Toyota beats VW as world's largest car maker in 2014

Though the news is heartening, I feel equally sad seeing the top three and their lackadaisical approach to the behemoth Indian Market.

None of the three biggies are at all serious about their products and leaving Toyota, even the ASCs are extremely poor and averse to client service.

Equally sad to see GMs name and superimposing their approach in India.
The SAIC derived dumps in India is not helping their cause at all.

Very poor scheme of things for these biggies. Where they should have taken the bull by its horns, devised new strategies and norms, what they do here is languish as sales laggards with underperforming and outdated models or puny sized engines and drab interiors for cars across the 5 lac to the 20 lac range(Hope you get the drift!!)
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Old 22nd January 2015, 12:08   #3
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Default Re: Toyota beats VW as world's largest car maker in 2014

I think because they are the top 3, they don't care too much about volumes or revenues from India. Because,ultimately, to cause even a small dent on Maruti and Hyundai would take a super human effort. And in the global scheme of things, they probably think it is not worth it. They are probably happy to have a presence in the market, have some local sales and focus on exports-where their money lies.

The Ford Ecosport is a case in point, In the months post launch they could have sold maybe 10 or 15,000 per month if they wanted to. But they stuck to supplying 4-5000 units at a time locally and focused the rest of the capacity on exports.

And in any case 95% of Indian car buyers will play safe and go for a Maruti or Hyundai for a first car irrespective of how great they think the other cars are.

I guess fortunes of these top 3 will change/or they will plan to change when Indian market matures enough and majority get into the '2nd car' mode. They have a better chance then.

Long way away though
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Old 22nd January 2015, 22:36   #4
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Default Re: Toyota beats VW as world's largest car maker in 2014

The problem is the extremely tight margins in India. Toyota is not interested in such low margin sales. In India, the majority of the car sales are under Rs.5 lakhs. The profit margins in India are very tight. And Maruti is king in that aspect.
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