Toyota 2006 Annual Report Download - page 38

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36
Toyota will develop operations decisively, setting its sights on
raising market presence and earnings in Europe’s fiercely competi-
tive market.
Market Conditions
Amid intense competition, market
size same as in previous year
In fiscal 2006, sales in the European
automotive market amounted to
17.12 million vehicles, roughly the
same level as in the previous year.
While global automakers compete
fiercely to grow sales and profits,
market size will likely remain in the
region of 17 million vehicles.
Performance Overview
Eighth straight sales record takes
market share above 5% for first time
In Europe in fiscal 2006, Toyota
posted its highest-ever sales for the
eighth year running, with consolidat-
ed shipments of 1.02 million vehi-
cles. As a result, market share on a
calendar-year basis passed 5% for
the first time, and Toyota rose from
eighth to seventh place in Europe’s
passenger car market. On the back
of favorable sales, consolidated pro-
duction totaled 623,000 vehicles.
The Toyota brand enjoyed strong
sales across the European lineup,
including the Yaris, our flagship
mass production model; such main-
stay models as the Corolla and
Avensis; and the Aygo, a small pas-
senger car built by our joint ven-
ture company in the Czech Republic.
Further, efforts to bolster diesel
vehicle sales bore fruit, with diesel
vehicles accounting for 40% of
Toyota’s vehicle sales in 2005, up
from 37% in the previous year.
Mindful of the European market’s
intensifying competition, the Com-
pany will enhance its brand image by
Business Overview
Lift Local Production Capacity to 825 Thousand by 2007
United Kingdom (TMUK) 285,000 vehicles
France (TMMF) 270,000 vehicles
(increase from 240,000 to 270,000 units in 2006)
Turkey (TMMT) 150,000 vehicles
Czech Republic (TPCA) 100,000 vehicles*
Russia (TMMR) 20,000 vehicles (scheduled for December 2007 start-up)
* Toyota-brand vehicles
Note: Please see the Overseas Manufacturing Companies section on page 134 for full plant names.
400
200
1,000
600
800
1,200
’02 ’03 ’04 ’05 ’06
FY
Consolidated Vehicle Sales
and Production in
Europe
(Thousands of units)
Consolidated vehicle sales
Consolidated production
0
+4.5%
+4.5%
1,023
623
100
300
200
400
10
30
20
40
’01 ’02 ’03 ’04 ’05
CY
Diesel Vehicle Sales and
Diesel Sales Ratio
(Thousands of units) (%)
Diesel sales ratio (Right scale)
Note: Different from fiscal year figures
00
40.3%
+10.6%
345
Automotive Operations Europe