Toyota top selling automaker despite China fall

Toyota sold 2.43m vehicles in January-March outpacing US automaker General Motors at 2.36m

Toyota held onto its status as the world's top-selling automaker in the first quarter of this year, although the three-way race with General Motors and Volkswagen is proving tight, as its sales fall in China and Japan.

Toyota Motor Corp. Reported today it sold 2.43 million vehicles during the January-March period, outpacing US automaker General Motors Co. At 2.36 million vehicles and Volkswagen AG of Germany at 2.27 million vehicles.

Toyota's first quarter sales declined 2.2 per cent from a year earlier, while those for GM were up 3.6 per cent and Volkswagen's jumped 5.1 per cent.

GM's quarterly results were within about 69,000 vehicles of Toyota's.

The Japanese maker of the Prius hybrid and Camry sedan reclaimed its crown as world's top automaker last year, after losing it to GM a year earlier, when it was battered by the tsunami and quake disasters in northeastern Japan.

GM had been Number 1 for seven decades before losing that title to Toyota in 2008.

Toyota has been hit by a resurgence of anti-Japanese sentiment in China because of a territorial dispute over tiny islands, and some Chinese are worried about being seen driving a Japanese car. The company says the situation is slowly improving but getting back to solid growth again is likely to take some time.

The end of subsidies for green vehicles in Japan hurt Toyota sales in its home market. Such incentives had previously helped boost sales of its popular hybrid models.

Toyota's quarterly vehicle sales were down 13 per cent in China and down 15 per cent in Japan, compared to the same period last year.

Toyota is roaring back in North America, where sales rose 7 per cent, as well as in many Asian nations, where it is relatively dominant.

Its stumble in China is a sore point as both GM and Volkswagen are gaining ground in that market, the world's largest, where potential for growth remains vast. The Chinese market is also crucial amid languishing sales in Europe, a far less important market for Toyota.

Last year, Toyota sold 9.7 million cars and trucks worldwide to beat GM's 9.29 million and Volkswagen at 9.1 million.