Toyota wants to improve in Germany

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In an interview for Automotive News Europe, Toyota Europe CEO revealed company’s plan to evolve in Germany, a market where sales have decreased in the last period. Johan van Zyl, the new Toyota Europe CEO, talked in an interview made by Automotive News Europe about Japanese company’s plans to increase its sale in Germany and improve the business, a market where deliveries for Toyota decreased by 8 percent through September. He admitted that the automaker does not perform as well as Toyota would like on “the most challenging market in the world”. One of the plans is re-balancing and reducing the German dealer network, which is a very spread out one, from 533 to 384 and moving from a two-tier to a one-tier structure. In terms of volume growth, Johan van Zyl predicts a very modest 2016. In terms of pricing, the German market is a very challenging one and extremely competitive this year because of channel mix. Toyota is targeting by 2020 400,000 hybrid sales, up from about 250,000 currently. A quarter of its current sales in Europe are hybrids and 30 percent diesel cars. This trend will eventually shift the balance in favour of hybrids and Johan van Zyl believes it will happen by 2020 and Toyota will definitely sell buy then more hybrids than diesels. The company’s share of hybrids went to 24 percent this year from 20 percent in 2014, with an average conquest rate of 58 percent from gasoline to the Yaris and Auris hybrid models, which is 10 percent above Toyota’s conventional conquests. Toyota’s hybrid model line-up in Europe will go from six to eight, with the addition of RAV4 hybrid and the production version of the C-HR. Via Automotive News Europe