Toyota, Honda will lead incentives war

Honda, Toyota offer big incentives to boost sales

The earthquake that struck Japan in March put the car industry in plenty of problems resulting in loss of production and low sales. After months of uncertainties and despair, the leading car makers of Japan are gearing up in a big way to account for all the losses incurred. Industry experts feel that a battle is on the cards between the best car makers of Japan in order to achieve maximum sales. Plenty of plans and strategies are being charted out to woo the consumers. The consumers are also not complaining as they have plenty to look forward to now. With the economy not doing well, the consumers had shied away from the showrooms.

Industry sources have revealed that plenty of incentives are going to be given by car makers, as the production of cars has also picked up. The buyers are in for a shopping feast as they would have a larger say in buying. Honda and Toyota are leading in offering incentives to customers. This also makes great sense as Honda and Toyota were the hardest hit and these two car makers had suffered huge production losses. The market share of Toyota in the United States has gone down by a good three percent.

The supply of inventories for manufacturing new cars is steadily increasing with Honda and Toyota gaining the most. Toyota is going all out to increase its car output for catering to the needs of domestic market. Toyota is also mobilizing its operations at its plants all over North America to increase the output of cars at these units. This is seen as a positive move as the majority of car dealers were left idle without any branded new cars. The North American car production of Honda is in full swing and back to its original full capacity. Honda has also increased its production of cars in Japan to 95% of its original capacity.

The year 2011 has been bad for both Honda and Toyota with both suffering huge losses. This can be attributed to lack of supply of spare parts and accessories required for manufacturing new cars. Honda witnessed car sales dip by as much as 28%. The car sales of Toyota went down by 23%. Other leading car makers of Japan also incurred significant losses with Subaru losing 9% of its car sales in the month of July.

At the same time, Korean and American car makers increased their market share by manufacturing new cars. General Motors increased its share by 8%, Chrysler increased its sales by a good 20% during the month of July and Ford also gained around 13%. The Korean and American car makers largely gained because sufficient Japanese cars were not hitting the market. The dealerships of Honda and Toyota are upbeat and optimistic.

In order to increase the consumer and dealer confidence, Toyota is planning to introduce the next model of Camry Sedan in the mid size range. The Camry Sedan has been Japans number one selling car for a record thirteen years out of the last 14 years. The good news is that prices were slashed by a good $2000 compared to the last model.

Not to be left behind, the car dealers are also offering huge incentives, primarily due to the confidence shown by Honda and Toyota. All the positive steps taken both by the dealers and leading car makers should definitely bring back the eager consumers back to the car showrooms. Definitely, this is a great time for the consumers to buy new cars with plenty of discounts and incentives being offered.

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