Toyota Motor Corp (ADR) (NYSE:TM) Dominant overall but Asian Sales Stay Low

Toyota Motor Corp (ADR) (NYSE:TM) announced on Wednesday that it is quite close to achieve an earnings record of $17.5 billion net profit, but a slowdown in Asia which includes certain areas of China might become the cause the company falling behind. North American earnings were strong as the company revised its fiscal year profit market estimate by 12.4 percent to 2.0 trillion yen. Toyota Motor Corp (ADR) (NYSE:TM) is positive that the revenue will come in at 26.5 trillion yen.

The company had already booked 1.13 trillion yen profit for six months, starting in September, from one trillion yen a year ago. The revenue, in the previous quarter has elevated by 3.3 percent, to 12.94 trillion yen. Nissan (NYSE:NSANF), which is the company’s fierce rival posted its half year net profit, which rose by 25 percent to 237 billion yen.

Toyota Motor Corp (ADR) (NYSE:TM) isn’t concerned about rivals as of now, as the lead it holds is unbeatable. Toyota Motor Corp (ADR) (NYSE:TM) is being backed up by Japan Government’s decision of heavy spending policies and monetary easing measures, carried out at the Bank of Japan, which is expected to weaken the strength of Yen.

A weaker yen is good as far as competition between exporters is concerned, but there are other factors involved that need to be manipulated. Toyota Motor Corp (ADR) (NYSE:TM) rose by 7% in the large Chinese market. However, it dwindled by 26% in Thailand and Indonesia because of the political unrest.

Japanese automakers’ sales have been waning in China since 2012, and last year, because of the Tokyo-Beijing fiasco over an island, a consumer of Japanese brand boycotted Toyota Motor Corp (ADR) (NYSE:TM). That has taken its toll on the world’s largest automaker.

Analysts believe that in China, consumers aren’t really open to Toyota Motor Corp (ADR) (NYSE:TM). There’s still that anti-Japanese sentiment lingering around, which is hurting good business, and Toyota Motor Corp (ADR) (NYSE:TM)’s growth in the overall region. The company’s North American sales have jumped by 7.5%, to $1.39 million, while Europe posted 1.78% in profits. Half year sales in the native country have decreased by 6.4%, because of the rise in tax back in April this year.

The Japanese auto parts maker, Takata; that supplies parts to Toyota Motor Corp (ADR) (NYSE:TM), is facing U.S class action suit over a major airbag defect. This will cost Toyota Motor Corp (ADR) (NYSE:TM) a hefty sum, since a recall will come underway; that will cost the companies associated with Takata.

Toyota Motor Corp (ADR) (NYSE:TM) is the first automaker to touch the trillion benchmark, and is faring well ahead of its competitors All Toyota Motor Corp (ADR) (NYSE:TM) has to do now is to improve its situation in the waning Asian market, and try drawing in the Chinese investors. Chinese market holds lots of promise, and Toyota (ADR) (NYSE:TM) must not let it go. Once the Chinese people embrace the company, it will become the single most dominant automaker in the world.