Toyota: Sales Dip; Incentives, Prices Rise

Toyota Motor Corp. reports earnings Thursday, November 7, for the quarter ended Sept. 30, 2019, its second quarter since its fiscal year ends March 31, 2020. In the U.S., one of Toyota’s largest markets, Toyota Motor sales slipped while incentives and prices rose.

In the U.S., Toyota Motor sales dipped 1%, in line with the overall market in the quarter, according to Cox Automotive data. Toyota brand sales were roughly flat; Lexus sales fell 6%. Toyota and Lexus sales were highest for the quarter in 2017.Toyota boosted incentives by 5% in the quarter to an average of $2,737 per vehicle, according to Kelley Blue Book. That’s still relatively low by industry standards. The average incentive on Lexus models rose 7% to $5,735 per vehicle, the highest level for the quarter since at least 2014. The average Toyota brand incentive was $2,338 per vehicle, up 5% and nearing the high of the same quarter in 2017.Toyota’s Average Transaction Price (ATP) rose 3% in the quarter to an average of $34,034, a record for the quarter, according to Kelley Blue Book. Toyota brand’s ATP rose 3% to $31,827, a record for the quarter. Nearly every model gained some in ATP, including the high-volume RAV4, which added a hot-selling hybrid version, and the revamped Corolla had notable increases. Lexus’ ATP slipped from the year-ago record to $48,991.