Toyota 2007 Annual Report Download - page 43

ANNUAL REPORT 2007 41
Although there have been some
regional variations, the size of the
European market as a whole has
remained around 17 million vehi-
cles over the past several years.
Amid intense competition among
local and global automakers to
grow sales and revenues, demand
in the market is expected to
remain stable.
Performance Overview
Ninth Straight Sales Record
Heightens Toyota’s Presence
In Europe in fiscal 2007, Toyota
extended its streak of sales records
to nine years, selling 1.22 million
vehicles on a consolidated basis. In
a European market of 19 countries,
Toyota ranked eighth in Europe’s
passenger car market, and market
share reached 5.8%. Supported by
robust sales, consolidated produc-
tion exceeded 700,000 vehicles.
Among Toyota-brand vehicles,
sales of our flagship mass produc-
tion model, the Yaris, remained
strong. In December 2006, the one
millionth Yaris rolled off the line at
our plant in France, which began
operations in 2001. In addition, the
Aygo, a small passenger car that
has been built by our joint venture
company with PSA Peugeot Citroën
in the Czech Republic since 2005,
reached our initial sales target of
100,000 vehicles per year. As the
start of a campaign that will cover
countries throughout the region,
Toyota began marketing the Auris—
a strategic model for Europe and
Japan—in the United Kingdom in
February 2007.
Aiming to take advantage of
demand for diesel vehicles, which
represent more than half of the
European market, we worked to
step up diesel vehicle sales. As a
result, diesel vehicles accounted for
42% of Toyota’s European vehicle
sales in 2006.
Market Strategy
Strengthen Brand Power
by Cultivating Core Models
and Emphasizing Quality
In Europe, we will advance the
Toyota brand’s market penetration
by fostering core models in each
vehicle segment and improving
quality. Also, aiming to reflect the
characteristics of the European
market, we will increase the per-
centage of diesel vehicle sales and
introduce more hybrid models. In
production, we will continue to
increase local production and pro-
curement. In 2007, our plants in the
United Kingdom and Turkey began
production of the new Auris.
Beginning in 2006, Toyota’s plant
in France, which builds the Yaris,
increased annual production
capacity from 240,000 to 270,000
vehicles. In addition, our Polish
plant that manufactures manual
transmissions is moving forward
with plans to increase production
capacity from the current level of
600,000 units a year to 720,000
units by mid-2009. And, Toyota’s
Russian plant, presently under con-
struction in St. Petersburg, will
begin production of the Camry in
December 2007, with an initial
annual output of 20,000 vehicles.
Europe
French Plant Builds One
Millionth Yaris
Responsible for the production of the
Yaris (Vitz in Japan) in Europe, our plant
in France (TMMF) built its one millionth
Yaris in December 2006. Since the start
of production with an annual output of
150,000 vehicles in January 2001, the
plant has increased its capacity in
stages. Today, it has an annual produc-
tion capacity of 270,000 vehicles and
employs 3,950 people. A perennial
favorite in the region, the Yaris was
chosen as the European Car of the Year
in 2000 and had vehicle sales of 1.6 mil-
lion by the end of 2006.
One millionth Yaris
European Annual Production Capacity
in 2008 (planned)
1. United Kingdom (TMUK) 285,000 vehicles
2. France (TMMF) 270,000 vehicles
3. Turkey (TMMT) 150,000 vehicles
4. Portugal (TCAP) 10,000 vehicles
5. Czech Republic (TPCA) 100,000 vehicles *
6. Russia (TMMR) 20,000 vehicles
(to increase to 50,000 vehicles)
Total 835,000 vehicles
* Toyota-brand vehicles only
Note: Please see the Overseas Manufacturing
Companies section on page 66 for full plant names.
One millionth Yaris
European Annual Production Capacity
in 2008 (planned)