Japanese giant, Toyota has confirmed that it expects to sell fewer cars this year than it predicted due to the UK credit crunch and the weak US market.
With two of its biggest markets close to a standstill the firm has lowered its sales forecast from 9.85 million to 9.5 million vehicles, although this would still represent a 1% increase on last year.
Rival carmaker Honda also downgraded its sales forecasts.
While Ford and GM are losing money in America as Americans are not buying SUVs due to the high oil prices, it is has been claimed by industry analysts that the car will end up as a luxury item once more and that it will no longer be seen to be a necessity.
Global sales growth of 1% this year for Toyota would represent a sharp slowdown on last year’s 6% annual increase.
There is some good news as the flagging sales in the US and Japan have been partially offset by surging demand in emerging markets such as Russia and India.
Toyota still expects foreign sales to be 2% higher than 2007 at 7.27 million but domestic sales are expected to fall 1% to 2.23 million.
Simon McBride
