Japanese carmaker Toyota has cut its vehicle sales forecast for next year by nearly 7% as a result of demand softening in Western markets.

It expects to sell 9.7 million vehicles in 2009, against an earlier forecast of 10.4 million. Last month, it cut its 2008 forecast to 9.5 million vehicles.

High fuel prices and the credit crunch are making consumers less likely to buy a new vehicle.

Toyota also said it would speed up development of fuel-efficient vehicles.

Energy shift

As energy prices rise, customers are moving away from gas-guzzlers, increasing the attraction of more energy-efficient models such as Toyota’s Prius hybrid.

“We are looking at the current shift towards fuel-efficient cars (in the United States) as a structural change in demand,” Toyota President Katsuaki Watanabe told a news conference.

“We intend to respond quickly and flexibly to this environment.”

The news of the changed forecast barely impacted Toyota’s share price.

“For the last few months, the company began to say its previous target was impossible and they’ve scaled back gradually, so everybody’s used to the idea,” said Nagayuki Yamagishi, strategist at Mitsubishi UFJ Securities.

News reported by The BBC

Global vehicle production by Japan’s top three automakers picked up in July, reflecting strong demand despite the global economic slowdown.

Some analysts say Nissan, Toyota and Honda are benefitting from their reputation for fuel-efficient models as drivers face high petrol prices.

Toyota said its global production totalled 720,923 vehicles in July, up 9% from a year ago.

Nissan saw production jump 27% and Honda reported an 18% rise.

Japanese car makers have been faring better than their US rivals as drivers switch from SUVs to smaller, more fuel-efficient models.

Earlier this month, Toyota reported a 28% fall in net profits for the second quarter to 353.7bn yen ($3.2bn; £1.6bn), down from a record 491.5bn yen in the same period of last year.

However, this paled in comparison to the massive losses sustained by its US rivals.

General Motors recently reported a $15.5bn quarterly loss and Ford’s three-month loss was $8.7bn.

While US sales have slowed, Toyota has seen sales in countries such as Russia and China rise.

News reported by The BBC

The Japanese carmaker Toyota has seen quarterly profits drop less than forecast but remains cautious.

Net profits fell 28% in the three months to June at 353.7bn yen ($3.2bn; £1.6bn), from a record 491.5bn yen in the same period of last year.

The firm said the trading environment had taken a sharp turn for the worse, creating a “very tough” quarter.

The weak US economy and the stronger yen, which makes Japanese goods more expensive overseas, have dented sales.

Another factor making it harder for Toyota and other car firms is the rising price of raw materials.

While US sales have slowed, Toyota has seen sales in countries such as Russia and China rise.

Energy efficient

Given the tough conditions, Toyota said: “It will be crucial for us to act quickly and flexibly to overcome this.”

The firm is maintaining its earnings outlook for the year to March 2009, predicting net profits of 1.25 trillion yen.

As energy prices rise, customers are moving away from gas-guzzlers, helping boost sales of more energy-efficient models including Toyota’s Prius hybrid.

While its rival Honda Motor recently reported an unexpected rise in quarterly profits, it is predicting falling profits for the whole of the year.

US carmakers seem to be struggling more than their Japanese rivals. General Motors recently reported a $15.5bn quarterly loss and Ford’s three-month loss was $8.7bn.

News reported by The BBC