Jan. 11, 1982

TOYOTA: 1981 in Review and Outlook for 1982

A―1

The Japanese Automobile Industry―Results in 1980 and 1981 (estimated)

The Japanese automobile industry produced a little over 11 million vehicles in 1981, about the same level of production recorded in 1980.

vehicle units

^*	Including vehicles of 550 cc or less displacement.
^**	Knocked-down (KD) components shipped from plants in Japan for assembly overseas which are under 60% completed per vehicle (total cost base) are designated as KD sets. KD sets are not included in the unit count for production and export vehicles.

A―2

Toyota's Results in 1981 (estimated) and Outlook for 1982

In 1981, Toyota sold 1.493 million units domestically and exported 1.716 million units, for a total of 3.21 million units. (In addition, it sold 106,000 KD sets.)
Sales targets for 1982 have been set at 1.65 million units for domestic sales and 1.73 million units for export, for a total of 3.38 million units, plus 140,000 KD sets.

vehicle units

B―1

Domestic Sales

Outline

Domestic demand for motor vehicles in Japan was sluggish in the first half of the year, due largely to stagnant business conditions, an increase in the commodity tax on passenger cars and other factors. Demand started perking up beginning in late August, centered on passenger cars and stimulated by new model introductions and by increased consumer confidence in the future of the economy. As a result, total domestic sales for the year were 5.13 million vehicles, up 2% from 1980.
For Toyota, meanwhile, although sales dropped in the first half of the year, they recovered in the second half―led by passenger car sales―and total sales were 1.493 million vehicles, just about the same as 1980.

unit vehicles

B―2

Exports

Outline

Total exports of all Japanese motor vehicles for 1981 were 6.05 million units, about the same level as 1981. (There were also 550,000 KD sets exported.) Growth was held down by factors such as global economic stagnation and the effect of voluntary restraints exercised by the Japanese in exports to markets such as the U.S. and the E.C.
Toyota's exports for 1981 were 1.716 million units, down 4% from 1980. (There were also 106,000 KD sets exported.) Toyota thus reached its target export figure of 1.7 million units, set at the beginning of 1981.

unit vehicles

C―1

Domestic Sales

Outline

If the following three sets of conditions are met, the overall domestic automobile market can be expected to recover during 1982. The possibility exists for an increase in demand to about 5.48 million units, up 7% from 1981.
1. A leveling off in consumer prices, economic recovery, and other factors contributing to an increase in real income and recovery in personal demand.
2. A favorable turn in the profit situation of business enterprises, due to factors such as a decrease in the official discount rate, and a resultant recovery in corporate demand and the demand for trucks.
3. A continuing positive influence on demand from the new car models introduced during 1981, and an added stimulus from other new models expected to be introduced in 1982, will bring out the latent demand of consumers who have been holding off on replacing their old cars.
Toyota has set a domestic sales goal of 1.65 million vehicles, based not only on its strengthened sales system and more attractive line-up of products but also on the favorable outlook for expansion in the overall market. If the conditions for recovery in market demand are not met, however, or if difficulties are experienced in carrying out its sales plans, Toyota will respond with flexibility wherever necessary while keeping a close eye on trends in the market.

unit vehicles

C―2

Exports

Outline

The Japanese automobile industry will have to make a major effort in its exports during 1982 just to maintain the level it achieved in 1981. Although the world economy is turning toward recovery, which means that expansion can be expected in motor vehicle markets around the world, the general export environment will be difficult, affected by import restrictions in the U.S. and Europe, a relative weakening in the competitiveness of Japanese automakers, and other factors.
Principally because of the foregoing factors, Toyota has set an export target for 1982 of 1.73 million units, just slightly higher than 1981. (In addition, Toyota will export 140,000 KD sets.)

unit vehicles