The sales for Toyota fell by 6.6 percent compared to the previous year and two models were responsible for the majority of this loss.
The sales figures are in for January and the thirst largest automaker in the US has reported a loss in sales for the month compared to only a year ago. It seems, some of the factors in the US market right now are to be blamed for the fact that this brand experienced a loss in sales. Let’s take a look at the numbers and the factors involved in the sales drop by Toyota.
Low Fuel Prices Turn Customers Away from the Toyota Prius
The Toyota Prius has been one of the most successful and impressive hybrid cars on the market for nearly two decades. When gas prices were increasing at an alarming rate, this was the car that many of us turned to for the drive we wanted to enjoy. With the drop in the cost of fuel and the advancements in engine technology, most of us don’t feel that we need to drive a small hatchback or sedan any longer. Because of this, the Prius was the model with the largest sales drop as it declined by 57 percent for January.
Moving Away from Sedans
If there wasn’t already evident that we aren’t looking at sedans as the cars we want to drive any longer, the movement away from these models by domestic brands should have been a significant enough argument. Add to this the fact that the Toyota Camry was the other model that fell during January for Toyota with a drop in sales compared to the same month a year ago of 3.4 percent. While this might not be an alarming percentage, it’s certainly enough for Toyota to stay vigilant.
Another Factor that Showed Up Late
If there was a market in which more than 800,000 workers were suddenly without work and without an income would you expect these people to spend their money on cars? Of course not, and the recent government shutdown that took place caused automotive experts to predict a decline in sales for the industry of about one percent during the month of January. These same experts have also predicted a total market decline of about 1.9 percent after having several years of record sales that have caused the numbers to increase to where they are now.
Will this Decline Continue for Toyota
With all the factors that are considered, unless Toyota does something to boost the interest in the Prius, sales will likely continue to decline for this model. The offset for this factor will be found in the pickup trucks. A new look to the Tacoma is on the way and a new Tundra is being worked on, which will both likely increase in sales throughout the year. While the automotive industry might level off in regards to sales, as automakers shift their focus toward the SUV and pickup truck models success can be found, and Toyota seems to be on the right path with their upcoming new models.
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