Automotive - - Jan 30,2017
Japan-based Toyota Motors has lost its four-year long run as the world’s largest selling automaker to German rival Volkswagen, for the year 2016.
Toyota announced that the combined sales of its subsidiaries including Lexus, Daihatsu minicar and Hino Motors trucks rose by a mere 0.2 percent to 10.175 million last year. On the other hand, Volkswagen group’s total sales stood at 10.31 million.
The third spot was held by General Motors, which sold 9.57 million units for the year. Interestingly, in terms of production Volkswagen has surprisingly made 100,000 more units than its counterpart.
Toyota’s downturn could be majorly due to a slowing demand for its flagship Camry sedan as its sales decreased in the US and China. Analysts have also suggested that the US auto industry’s overall sales slowdown was the key reason for Toyota’s fall.
Although, domestic sales for Toyota rose by 5.5 percent following new launches for models like the Prius, but international sales slipped by 0.6 percent as demand slowed down in the US, Africa and the Middle East.
Volkswagen, meanwhile, benefited from its overall sales in China and a tax cut there has boosted consumer demand since 2015. The company recorded a 3.8 percent gain in its overall sales, including its vast range of subsidiaries and production of trucks and buses.
This could be termed as a milestone achievement for Volkswagen as its reputation has been hampered after the US diesel emission scandal in late 2015. The sales will also help the automaker to make up something for the billions of dollars that it has to pay as compensation for the emission scandal.
However, Toyota continued to dominate its rivals in making profits Toyota’s profits was more than double than that of Volkswagen’s until the quarter ending September 2016. Profits for the fourth quarter is yet to be disclosed.