Toyota's profits are boosted by sales in China

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      The automaker sold 464,000 cars in Asia in the third quarter, up 15% from a year earlier, as China's demand for cheap and cheerful Corolla and Levin cars continued until the end of 2018.
The popularity of its luxury Lexus brand has also helped it withstand a larger slowdown in the world's largest auto market.
Toyota's global sales grew by 2.8% to 2.71 million vehicles, of which Asia compensated for the weakness in the North American market, with sales falling by 7.5% to 680,000.
"When one region does not perform well, other regions can make up for this weakness. Similarly, when some models do not perform well, others can be compensated, "Shigeki Tomoyama, executive vice president, told reporters at a briefing.
This is an ongoing work, but as our markets and models diversify, we are beginning to see this happen.
Toyota shares fell 1.5% on Wednesday, but recovered slightly to 0.7% in a largely stable market.
For an interactive chart of Toyota's operating profit and car sales, see tmsnrt.rs/2Ro1enH.
Toyota has been hit hard in the United States by stagnant overall demand, as sales of large models such as Corolla and Camry have slowed and sales have risen sharply over the past two years.
By contrast, Carola, Levin and Camry are Toyota's top three models in China in 2018, surpassing large models such as RAV4 SUV cross-border vehicles, as buyers control costs amid the deepening economic slowdown in the Sino-US trade war.
For an interactive chart of Japanese automakers'sales in China and the United States, see tmsnrt.rs/2RjnBuA.
Business in China
Toyota sold 1.47 million cars in China in 2018, up 14%, and plans to increase sales to 1.6 million this year, even though it and other automakers have had another tough year there.
Last year, China's auto sales shrank for the first time since the 1990s, affected by the phasing out of the purchase tax on small cars and the trade war. The world's second largest economy grew the slowest in nearly 30 years in 2018, and the pace is expected to weaken further this year.
But as the Sino-US trade war puts pressure on rivals such as Ford, Japanese automakers such as Toyota, Honda and Nissan are expected to benefit from a warming political relationship between Tokyo and Beijing.
However, niche companies such as Mazda Motor Co. of Japan have not been able to get rid of the wider weakness of China.


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