Trouble In Paradise for Toyota Sales or just a blip on the timeline in general?
#1
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Source: Jalopnik
Toyota's Huge Sales Dip Marks a Rough Start to 2019
Toyota is already down 7.1% on North American automobile sales this year, as compared to January 2018, and Lexus isn’t far behind with a 2.8% decrease in volume. Only six Toyota nameplates outperformed their individual January 2018 volume, in fact. Corolla sales are up, as are C-HR and 4Runner. On the Lexus side, LS, RC, and ES sales are up. Every other car, truck, van, or SUV in the Toyota lineup experienced a not insignificant sales dip.
In January 2018, Toyota reported 167,056 sales in the U.S. market. This year, that number has been reduced to just 156,021. Averaged across each of Toyota’s 1200 plus dealers, that means about 9 fewer cars were sold per dealer last month. That’s an incredible drop in 12 months time.
Most of the losses are lead by aging models like the Prius, Sienna, and Land Cruiser, but the new-for-2019 Avalon also saw a huge dip. The Rav4 seeing a sales decrease doesn’t worry me quite as much as the rest of it, as some buyers are likely waiting for delivery of the new tougher-looking updated model to pull that money trigger.
For one thing, Americans by and large are buying fewer cars and driving fewer miles. For another thing, the American consumer confidence index dropped 6.4 points last month. Even more telling, consumer expectations index decreased by more than 10 points. When you’re not confident in the economy, and you’re not confident that things will turn around in the short term, that might be a good reason to stay home instead of buying a new car.
Then there is the lengthy, volatile, and highly visible government shutdown that saw thousands of government workers without pay for most of the month of January. It’s highly likely this had a knock-on effect on the above consumer confidence.
Despite year-on-year growth in 4Runner and C-HR sales, Toyota’s total SUV sales volume decreased by 4.8%. Prius sales volume was halved. It’s not a good start to 2019 for Toyota, or the American auto industry as a whole. It’s going to be a rough and bearish year for U.S. auto sales.
In January 2018, Toyota reported 167,056 sales in the U.S. market. This year, that number has been reduced to just 156,021. Averaged across each of Toyota’s 1200 plus dealers, that means about 9 fewer cars were sold per dealer last month. That’s an incredible drop in 12 months time.
Most of the losses are lead by aging models like the Prius, Sienna, and Land Cruiser, but the new-for-2019 Avalon also saw a huge dip. The Rav4 seeing a sales decrease doesn’t worry me quite as much as the rest of it, as some buyers are likely waiting for delivery of the new tougher-looking updated model to pull that money trigger.
For one thing, Americans by and large are buying fewer cars and driving fewer miles. For another thing, the American consumer confidence index dropped 6.4 points last month. Even more telling, consumer expectations index decreased by more than 10 points. When you’re not confident in the economy, and you’re not confident that things will turn around in the short term, that might be a good reason to stay home instead of buying a new car.
Then there is the lengthy, volatile, and highly visible government shutdown that saw thousands of government workers without pay for most of the month of January. It’s highly likely this had a knock-on effect on the above consumer confidence.
Despite year-on-year growth in 4Runner and C-HR sales, Toyota’s total SUV sales volume decreased by 4.8%. Prius sales volume was halved. It’s not a good start to 2019 for Toyota, or the American auto industry as a whole. It’s going to be a rough and bearish year for U.S. auto sales.
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Errata that I think was in the article:
"aging models like the Prius, Sienna, and Land Cruiser"
Both the Sienna and LC200 are based on old platforms, while the Prius is riding on the 1st iteration of TGNA. Although 4 years old, its still new for a platform, versus the other 2 which are almost a decade old.
"aging models like the Prius, Sienna, and Land Cruiser"
Both the Sienna and LC200 are based on old platforms, while the Prius is riding on the 1st iteration of TGNA. Although 4 years old, its still new for a platform, versus the other 2 which are almost a decade old.
#4
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Toyota is already down 7.1% on North American automobile sales this year, as compared to January 2018, and Lexus isn’t far behind with a 2.8%
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I have to agree with Lexus 2000. There are going to be regular ups and downs in vehicle-sales....that is nothing to panic about. It is unrealistic to expect continually-increasing sales all the time, even with popular models. And, as far as Avalon sales dropping, I suspect that it (and the Kia Cadenza) will see an uptick when the Bozos at Ford and GM kill off the Impala/Lacrosse and Lincoln MKZ.
Originally Posted by Bob04
The LS in January 2015 outsold the LS in January 2019 by over 150 units. That's terrible..
One look at the new Avalon and it's easy to see what the problem is, Not sure what they are thinking,
Last edited by mmarshall; 02-03-19 at 04:03 PM.
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Because of one month?
#12
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I must say I love going to Jalopnik more for the reading entertainment than for significant auto-industry news announcements. That said, Toyota must have seen this coming - you have vehicles (i.e. Sienna, Sequoia, Tundra) that haven't been refreshed especially when the Tundra/Sequoia is in a segment that is only growing.
I went to a Toyota dealership in Houston last week and asked to test drive an Avalon - the salesperson was surprised and said they only had 4 Avalon's - they can't keep the new Rav4's in stock but barely anyone asks for the Avalon. Wonder if Toyota will kill it prematurely (i.e. like the Impala) or let it run its course..
I went to a Toyota dealership in Houston last week and asked to test drive an Avalon - the salesperson was surprised and said they only had 4 Avalon's - they can't keep the new Rav4's in stock but barely anyone asks for the Avalon. Wonder if Toyota will kill it prematurely (i.e. like the Impala) or let it run its course..
#13
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yeah i nixed jalopnik from my google news feed because of their ludicrous click bait headlines and horrible 'journalism'.
#14
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Yesterday we were in downtown Phila. and the auto show was in town. There were all these Toyota vehicles driving around slowly and rather in the way, with TX license plates. Not sure if employees or customers or what. But they have to think--by disrupting traffic, it doesn't look good for the car co. All these things are important today when it comes to image etc.
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