Experts have said that Toyota Motor is running a high change of falling short of its own sales goals in China for 2014. They have cited China’s receding economy and the highly competitive pricings by German car companies.
IHS Automotive, a market research firm, stated that Toyota’s 2014 Chinese sales will amount to 1.09 million. This is still an improvement from last year’s 917,500, but falls short of the company’s current goal of creating 1.1 million car sales.
IHS Automotive also expects the sales to improve in 2015, although by only a small margin to reach 1.15 million units.
The country’s economy has slumped into its worst phase in 24 years, despite the numerous efforts made in terms of stimulus measures. Reuters’ reporters have said that the Toyota heads have told them that the German companies such as BMW have made heavy price slashes in order to compete with Toyota, Honda, and Nissan.
Toyota shares have since fallen 1.2 per cent to 125.80. In the same period, Nissan fell 6%, Honda fell 1.8% and BMW by 1.3%.
For the past four years, Toyota has been trying to sell 1 million units in a year.
Within the same time, China and Japan political tensions had flared up as both nations tried to claim the resource heavy islets in the East China Sea. The disputes had also caused multiple protests against Japanese companies in China, including Toyota and Honda, who had to halt production for some time.
Toyota’s stock rating is a demoralizing 58 on the IBD Composite Rating and has also lagged from the S&P 500. Shares, however, have trended higher than their 50 day line in the previous two months.