SBT Car News

The Shock to Toyota Sales

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Toyota Motor Corporation has always given something extra to its customer, that best reflect in the amount of sales it generate. In the first quarter of 2014 it has record breaking sales, making it to the top leaving companies like General Motors and Volkswagen behind.

It has given astonishing figures for its future with the target of selling 10 million cars this year. It is something no automaker has ever achieved. Everything was going to perfection with spirit touching sky when the government of Japan announced the increase in consumption tax from 5% to 8%, being fully functional from April 2014. Toyota was in the process of recovering, devising strategies to best of its expertise when another shock came that another hike will be coming  in October next year with increase from 8% to 10%.

The sales of Toyota cars have shrunk to the lowest level and there is much more to come, as the delivery of the vehicles purchased before April is delayed too. It is not just the prices that have increased for average vehicle but the good will is also at stake because of the delay.

It is high time for Toyota especially and other automakers in general to work towards reducing the effect of shock. Government of Japan has justified the change with the fact that they have more investments for new business to flourish as monopoly was never the style of country.