Toyota clings on to number one spot

Toyota said it sold 2.43 million vehicles during the January-March period, outpacing US firm GM at 2.36 million vehicles and Volkswagen of Germany at 2.27 million.

Toyota’s first quarter sales declined 2.2 per cent from a year earlier, while those for GM were up 3.6 per cent and Volkswagen’s jumped 5.1 per cent.

Toyota has been hit by a resurgence of anti-Japanese sentiment in China because of a territorial dispute over tiny islands, and some Chinese are worried about being seen driving a Japanese car.

The company says the situation is slowly improving but getting back to solid growth again is likely to take some time.

The end of subsidies for green vehicles in Japan hurt Toyota sales in its home market. Such incentives had previously helped boost sales of its popular hybrid models.

Meanwhile, PSA Peugeot Citroen said crumbling vehicle markets across Europe are behind a steep drop in its first quarter sales.

The parent company of Peugeot and Citroen reported a 10.3 per cent drop in sales at its automobile division to £7.4bn for the January to March period, down from £8.3bn a year earlier.

Combined Peugeot and Citroen vehicle sales fell 16.9 per cent in Europe, where it saw its market share slip as the overall car market fell 10 per cent.