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Home»Automobile»Toyota forecasts slower sales and price reductions in 2025
Automobile

Toyota forecasts slower sales and price reductions in 2025

Sam CharlwoodBy Sam CharlwoodJanuary 6, 2025No Comments4 Mins Read
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Toyota Forecasts Slower Sales And Price Reductions In 2025
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Recent vehicle sales in Australia will dip by about five per cent year-on-year in 2025, resulting in increased competition between brands, shorter wait times and the return of more discounting, based on Toyota Australia’s top salesperson Sean Hanley.

Nevertheless, the corporate’s sales, marketing and franchise operations vice-president also believes Toyota can extend its reign because the country’s hottest auto brand despite unprecedented challenges including an influx of latest Chinese carmakers.

At a press conference in Sydney this morning to announce Toyota’s 28th 12 months atop the brand new vehicle sales charts, Mr Hanley told reporters demand would cool in 2025.

After one other record 12 months in 2024, when latest vehicle sales totalled 1,237,287 in Australia, Toyota expects 2025 sales to sit down between 1.17 and 1.18 million vehicles.

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“The Australian latest automotive market has at all times been one of the vital competitive on the earth, and 2025 might be no different,” said Mr Hanley.

“We expect to see more latest brands and models, more alternative and stronger competition – which, in the long run, is great for the buyer.

“Straight away, we predict the market will ease marginally from the records set in 2024, mainly due to a greater balance between supply and demand. We then foresee a return to a more normal market environment.”

This 12 months marks a number of latest challenges for each established and incoming auto brands in Australia, where about 60 carmakers are already competing and an extra six or so are expected to reach in 2025.

Chief amongst those headwinds is the Australian government’s Recent Vehicle Efficiency Standard (NVES), increasing cost of living pressures and a federal election in coming months.

Mr Hanley believes those pressures will increase competition between brands, which can inevitably result in price reductions.

  • Toyota forecasts slower sales and price reductions in 2025
    Toyota Australia’s best-selling vehicles: RAV4 and HiLux.

“Obviously, each brand will determine their very own situation,” he said. “With all of those latest entries coming in and this must sell BEVs [electric vehicles] in numbers, there’s going to be some interesting dynamics available in the market.

“Having said that, Toyota will proceed to give attention to quality sales and providing customers with the most effective experience.”

Remarkably, Toyota’s 2024 results of 241,296 vehicles marked the 22nd consecutive 12 months that the Japanese marque has topped Australia’s latest vehicle market, with a 19.5 per cent market share. The result broke Toyota’s previous record of 238,983, set in 2008.

Despite rampant competition, Mr Hanley is adamant there may be scope for further sales growth at Toyota.

“We’re expecting one other strong 12 months of sales above 220,000 vehicles,” he said.

“I can assure you our order bank stays strong, so we’re optimistic for the long run.

  • Toyota forecasts slower sales and price reductions in 2025
    Toyota Australia’s GR sports automotive range.

“I’d like to get Toyota to twenty per cent market share. We fell just a little short in 2024, but we’re heading in the suitable direction. It’s going to be difficult – it may not be possible in the subsequent 12 months but in the subsequent five years, Toyota might be in a robust position to accomplish that.”

Asked how other brands could find success within the Australian market, Mr Hanley pointed to strong products, dealer networks and customer support.

“Ultimately, you’ve got to have the option to offer a service. You’ve got to have the option to offer confidence,” he said.

“Toyota has over 260 dealers nationally which can be well capable, invested, that may service and provide parts. If someone does get into difficulty – our cars aren’t perfect, it may well occur – there’s a Toyota dealer right beside them.

“The one query consumers have gotten to ask themselves with all these latest brands in the long run is ‘who’s there for them in the event that they get into trouble?’.”


This Article First Appeared At www.carexpert.com.au

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