Jan. 17, 1974

DECEMBER HIGHLIGHTS AND SUMMARY FOR 1973

TOYOTA DECEMBER PRODUCTION SLACKENS
Total 1973 output up 10.6% over previous year

TOKYO―During December 1973, Toyota Motor Company produced a total of 170,046 vehicles, which compares to 211,243 vehicles during the preceding month, down 9.9% from a year ago.

Toyota's share of total new car registrations during December was 102,468, a decrease of 30.3% from the previous year.

A total of 73,951 units were exported during December 1973, an 8.3% decrease from a year ago.

On the other hand, new car registrations of imported cars recorded an all-time high of 4,842 units, a 20.1% increase over a year ago. The previous record figure for imported cars was 4,032 units in December 1972.

Cumulative Toyota production for 1973 amounted to 2,308,098 units, up 10.6% over the previous year, and 98.2% of the company's 1973 target output of 2,350,000.

From January to December 1973, cumulative new car registrations numbered 1,551,477, (excluding Okinawa's 13,179 units), up 14.2% over the previous year. The company's share of all new car, total cumulative registrations for 1973 was 31.6%, a slight increase over the 31.3% share for the previous year.

Cumulative import car registrations for 1973 numbered 32,161 units, up 35.4% over the previous year figure of 23,751 units.

Toyota's cumulative 720,640 exports for 1973, were down 0.5% from the previous year.

PRODUCTION

The 170,046 units produced by Toyota in December 1973 was a 9.9% decrease from the figure recorded for the same month last year.

A breakdown by vehicle category shows that 123,006 passenger cars, 45,886 trucks and 1,154 buses were produced during the month, and passenger cars accounted for 72.3% of total December production.

The company's cumulative production for 1973 amounted to 2,308,098 units, up 10.6% over the previous year, and 98.2% of the 1973 target output of 2,350,000. Half-year breakdown of the total production figure indicates that 1,185,580 units were produced during the first half of the year (up 17.5% over the same period of the previous year), and 1,122,518 units rolled off the assembly lines in the second half of the year (an increase of only 4.1%) over the corresponding period of the year before). The company's production showed a satisfactory upward trend during the first half of the year due to favorable economic factors such as continuing upswings of the domestic economy, increases in consumer spending and the still somewhat relaxed financial situation, before the tight money policy of the government takes full effect.

Public awareness of the comparatively low automobile prices and the value of owning property in the midst of an increasing inflationary trend, also contributed to the uptrend. During the second half, however, Japanese industry felt the strong repercussions of raw material shortages (such as steel, rubber, polyvinyl chloride, glass fibers and fiber-reinforced plastics), marked decreases in industrial production due to power shortages, and a general disruption of the Japanese economy as a result of the oil crisis. In spite of all this, Toyota managed to acheive 98.2% of its 1973 production target.

A breakdown of cumulative 1973 production indicates that 1,631,940 passenger cars, 662,321 trucks, and 13,837 buses were produced. Passenger cars made up 70.7% of total 1973 production.

DOMESTIC SALES

According to figures compiled by Toyota Motor Sales Co., Toyota car registrations during December 1973 numbered 102,468 units, a 30.3% decrease from the same month of the previous year. The sharp decline in Toyota car registrations during the month reflects the current oil crisis, the consequent slowdown of domestic vehicle and rubber production, and a general slump in consumer buying.

Cumulative Toyota car registrations for 1973 amounted to 1,551,477 units, a 14.2% increase over the previous year. The company's share of total cumulative new car registrations for 1973 was 31.6% which compares to 31.1% for the previous year.

During the first half of 1973, Toyota's backlog of orders was 5 to 6 times above average for the period. The reasons for this were: 1) continuing favorable domestic economic conditions despite the floating of the yen and the subsequent tight money policy adopted by the Japanese Government. 2) an increase in personal income and consumer's leisure time, and 3) public awareness of the comparatively low prices of automobiles.

The 762,972 Toyota car registrations during the second half of the year was only a slight decrease from the 788,505 units recorded during the first half. This was largely due to the all-out efforts of the Toyota group of companies to combat the devastating slowdown of domestic production.

The Toyota group's efforts during the period included: 1) marketing of the Carina hardtop, Celica LB, Celica 2000 and Starlet, as well as remodeling of the Crown and Corona, 2) strengthening of Toyota's marketing setup through expansion of sales networks and increases in the number of Toyota salespeople, and 3) maintaining the current production level despite increasing labor and material shortages. In addition to the total figure of 1,551,477, there were 13,179 Toyota car registrations for Okinawa not included in this figure.

On the other hand, imported cars gained a record share of the total of ail new car registrations during the month — 4,802 units; a 20.1% increase over a year ago. The previous record figure for the imported car category was 4,032 units in December 1972.

EXPORTS

Toyota Motor Sales Company exports decreased by 8.3% from the same month of the previous year but the 73,951 vehicles exported during December 1973, compares favorably to the 70,457 vehicles exported during the preceding month.

Passenger cars accounted for 75.0% (55,435 units), of Toyota's total exports for the month. Of the total passenger car exports in December, Corolla was the best seller with 22,622 units, followed by Corona with 19,884 units, and Celica with 8,659.

The top three export destinations during the month were the United States (32,740 units), the Republic of South Africa (4,170 units), and Canada (2,808 units).

The company's cumulative exports for 1973 amounted to 720,640 vehicles. This favorable result may be due to growing world wide demands for automobiles, particularly for small cars, and is certainly attributable to Toyota's international reputation for 40 years of experience in small car manufacturing.

The three top export destinations during the year were the United States (269,053 units), Australia (49,527 units), and Canada (37,131 units). A breakdown by vehicle category shows that 525,059 passenger cars, and 195,581 trucks and buses were exported.