Why Toyota’s commercial truck sales have dropped by as much as 70% in five years August 26, 2021 August 26, 2021 admin

Toyota has been forced to cut production of commercial trucks by as many as 1.3 million cars annually, with some trucks now on sale for less than half the price they were a year ago. 

The company’s commercial sales were up by 1.6% in the year to June, but analysts have been predicting a decline of at least 20%. 

Toyota said it would cut 1.2 million vehicles by 2021, down from 1.8 million a year earlier. 

Analysts believe the drop is down to a combination of a slowing economy, the global economic crisis, and higher fuel costs. 

In December, Toyota announced it was selling fewer than 500,000 vehicles a year for the first time since it began selling commercial vehicles in 2007. 

The company has said it will reduce its sales of cars by up to 5% a year through 2025. 

Its financial results were disappointing and analysts have warned the company may not survive beyond 2025, despite the success of the Toyota Camry and Lexus ES350. 

Toyotas latest sales slump comes as it continues to grapple with rising fuel costs, including a new, $1,000 deductible for diesel vehicles. 

On Tuesday, the automaker reported a 9.4% increase in quarterly profit, with net income up by 12% to $7.9bn. 

Sales of the luxury Lexus, Infiniti Q50, and Audi A4 were up 3% to 1.56m units and 5.2% to 3.92m respectively. 

Shares in Toyota fell by 1% to 6,936 yen ($66.50). 

Toyos share price has lost more than 5% of its value since it peaked at nearly $1.6bn in March this year. 

Read more: Toyoyas latest quarterly profit falls, but sales continue to rise