Toyota has been one of the best car producers in the last decade. They have reached new heights where they can easily get a fair share of the market and compete with the higher automotive brands existing in the market. The growth of sales has been rapid over the last few years.
The company’s chief executive is very hopeful about the growth of the company in the next year as well. He clearly said “the last four years have been great as the demand for cars have gone up rapidly”. The rate of growth in sales in the last four years has been very high because of the pent up demand.
The automotive industry is on the rise but still there are a lot of factors to be taken into consideration. People are always looking for new and upgraded products. If a company fails to improve on the current status of the product line, then they are going to lose on sales significantly.
Jim Lentz clearly states in his speech that “the rate of growth in the automotive industry is likely to be slower this year”. He feels that the pent up demand is reducing with time and so the demand for cars will also fall. He feels that the rate of growth will not be as rapid like the last four years but the growth will be there.
In spite of the slow rate of growth he is hopeful of doing good business this year. He claims that the new Corolla and the renewed Tundra will boost the sales of the company as usual. There will be no problems for Toyota in the coming year. He is hopeful of having a profit filled 2014.
Factors determining industry’s progress:
He has also taken into account other factors like the reduction in unemployment increase in housing projects and increase in the GDP growth. These factors give the industry a big boost. He feels that due to these factors the momentum will exist in 2014 as well.
Other than these factors another important factor that has been helping the growth of the automotive industry is the constant reduction I loan rates. When the loan rates are low, people are likely to buy more cars. The rates attract the people in a big way and influence them into buying cars. He expects a 4.5% increase in the sales of the company.