Toyota overtook General Motors in sales for the first six months of 2008, selling 4.82 million vehicles compared to GM’s 4.54, a gap of over 280,000 vehicles. This isn’t the first time that Toyota threatens GMs spot as the king of global car sales. Last year, the Japanese automaker also led GM in global sales at the half year mark but GM managed to ease in a slim win – fewer than 4,000 cars and trucks – to retain its top spot by year end.
However, this year, it is increasingly likely that GM will succumb to second place for the first time in the face of rising gas prices, sagging consumer confidence and over-reliance on SUVs and trucks – vehicle segments that buyers in its most important market, the US, are now shunning.
“I believe that this is the year Toyota finally takes the sales lead,” said Dennis Virag, president of the Automotive Consulting Group in Ann Arbor, Mich. “Looking at the companies, at their strategies and portfolios, Toyota is just in a much stronger position than GM.” Toyota’s global car sales record is up 2% from a year earlier while GM registered a 3% decline.
Still, even Toyota, the world’s biggest automaker, admits tough times are ahead. It cut its 2008 global sales forecast by 350,000 vehicles to 9.5 million, blaming the downturn in the US market for the setback. The reduced sales forecast reflects a bleak environment for carmakers due to falling demand for cars especially bigger, higher-margin vehicles that consume more gas. The new projection would mean a 7% decline from Toyota’s sales a year ago.