Toyota rises in declining European car market

[Plex]

PARIS (Reuters) - Toyota continued to increase sales in Europe in February in a declining overall market, the ACEA association of European car makers said on Thursday.

Toyota, the world's largest car maker by market value, said it did not make use of the weak Yen to offer lower prices in the European market and its rise contrast with a sales decline by other Japanese brands such as Nissan and Mazda.

Total European car sales were down 2.5 percent to 1,083,811 passenger cars in February, and they slipped 0.3 percent over the first two months of 2007, against a year ago.

In the enlarged 27-member European Union, to which ACEA added new members Romania and Bulgaria for the first time in February, new car registrations were down 2.8 percent.

Toyota was the biggest gainer, up 13.1 percent in February and up 17.4 percent in the first two months of 2007 in the European Union and EFTA countries. Nissan, Mazda and Renault fell by more than 10 percent.

"We put focus on quality and our models are tailored to European customers," a spokesman for Toyota said. "The exchange rate is volatile and does not enter in our commercial policy." he added.

Toyota makes 70 percent of the cars it sells in Europe in European factories such as Valenciennes in France.

The spokesman said the Aygo, Auris and Rav4 four-by-four car were selling extremely well. The Aygo is made in a joint-venture with PSA Peugeot Citroen which sells the 107 and C1.

ACEA said that apart from a 5.7 percent rise in Italy, the biggest EU markets suffered losses in February with a 15.1 percent drop in Germany due to a sales tax increase and a 3.2 percent decline in Britain ahead of the March plate change.

In Britain car plates get a new starting letter in March and customers postpone buying beyond then to have a 'newer' plate to drive around and get better second-hand prices later on.

The biggest rise was in Latvia, up 84.1 percent, while Iceland led the declines with 43.3 percent.

Volkswagen remained market leader in the enlarged European Union, up 1.4 percent and with a rising market share to 19.6 percent from 18.9 percent.

PSA Peugeot Citroen of France was second-biggest, with a sales decline of 4.9 percent in February and its market share slipped to 14.4 percent from 14.8 percent.

Ford was third, up 4.5 percent and with a rising share to 10.2 percent from 9.5 percent.

GM slipped 1.2 percent and its market share nevertheless rose to 10.1 percent from 9.9 percent.


Fiat had a 6.5 percent boost, helped by new models such as Grande Punto, and its share jumped to 9.4 percent from 8.6 percent.

Renault, which includes Logan builder Dacia, dropped 12.1 percent and its market share fell to 8.9 percent from 9.9 percent.

Its position fell to sixth from a shared third place as its suffers from a lack of new models ahead of a new product offensive starting later this year with Twingo and Laguna.

Stripping out Dacia, Renault brand sales fell 13.9 percent in February.

Reuters