Toyota Motor expects to sell more than 865,000 vehicles in Europe this year, up from 847,530 in 2013, helped by a gradually recovering market and the popularity of its hybrid models, the head of its European operations on the eve of the Geneva show.
Didier Leroy also said the company expects to grow its market share in Europe from last year’s 4.7%, Reuters reported. The automaker still targets sales in the region of 1m by 2015, Leroy said, adding he would not push to reach that target if it could not be done profitably.
Go deeper with GlobalData
“We will not grow just for volume,” Leroy said. “If I can achieve profitable growth by pushing to 1m, I will.”
Leroy also said he expected to boost Toyota’s profitability in Europe in fiscal 2013/4 after operating profit already jumped 56% to EUR327m (US$450.39m) in the first nine months.
He said the weakness of the Russian ruble and the Turkish lira had a “very negative” impact on his operations, but would not affect the profitability target. He did not foresee any major improvements in those two currencies anytime soon.
Leroy said the company was carefully monitoring the unfolding situation in Ukraine and Russia, where the group sold 16,000 and 172,000 vehicles last year, respectively, Reuters reported.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe carmaker counts 56 countries, including Israel and Russia, as part of its European market which Leroy expects to continue recovering.
“Everyone agrees that the second half of 2013 was already better and 2014 will continue the same trend,” he said. “But it will be a very, very slow recovery.” He said growth in the region this year would be driven by western Europe, while he expected central and eastern Europe to be stable.
He expects sales and market share gains to be boosted by new models, further cost cuts and the increased popularity of hybrids, adding Europe was already Toyota’s fastest growing hybrid region.
“Last year, we sold more than 156,000 hybrids in Europe, which is almost 20% of our sales,” Leroy said.
Karl Schlicht, head of sales in Europe, later told Reuters the carmaker’s Yaris and Auris hybrids had “been a breakthrough” for the group in the technology and helped boost sales by being more traditional European designs and with a pricing that came closer to the mainstream options.
Toyota is launching its redesigned Aygo at Geneva. The model is shared with PSA’s Citroen and Peugeot brands and built at a jointly operated plant in the Czech Republic.
