Japan exports more than 4 million cars a year, besides there are factories all over the world of their car companies. Toyota Motors is considered the top Japanese company by market capitalization. Many of the world largest car companies are from Asia and Japan. With the current plans of Toyota to increase sales in European region by 30% by 2025, the overall trend is not the same in some of the Asian countries and European. Toyota expects to sell 1.4 million cars in Europe in 2025. The car maker expects to sell much more SUVs including the smaller model. Nonetheless, the growth in Europe is already surprising considering many regions and countries saw weaker sales in 2019.
China had 8% decline in car sales in 2019.
As car sales are slowing in China and Asia, Europe saw a better picture. The car sales in China experienced a drop of 8% in 2019. In addition, this happened to be the third year in a row of the decreased sales of cars. In a year prior to that, the car sales dropped 3%. For company as Ford, the sales of car decreased 26% in 2019. Overall, 25.8 million cars were sold in China in 2019. In a time when electric car sales rose around the world, in China they showed a slowdown in some categories. Therefore, many expectations are that the 2020 will be a key year to see if the trend of falling car sales will continue for another year in a row. Moreover, the new decade may be a starting point of where the car sales go and pattern for the coming years.
Car sales decreased by 2.3 million units in China in 2019
At the same time, the European car sales showed an improved trend. According to the European Automobile Manufacturers' Association, the increase in sales was 1.2% for the 2019 year. That was not the biggest of increases, but many places saw a weaker data than that. Meanwhile, there is a prediction by official organizations in Europe that the vehicle sales will decrease 2% in 2020. Therefore, many continents are expected to have the decline in car units sales. However, the GDP across the world is forecasted to grow 3.3% in 2020.
Back to Toyota and Europe, the company looks to have more than 1 billion euros or about 1.1 billion US dollars in profits from the European region in 2019. A new type of cars such as electric cars and others might make a big change in the revenue as public does change the mind about them and gets more information. Therefore, this new decade might be a surprise in the way Asian and European regions have vehicle sales demand and supply as well as the type of cars that are offered in the market.
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