Toyota loses sales race to GM in third quarter

But the numbers Toyota released show the automaker running neck and neck with GM, which sold 2.38 million vehicles in the third quarter.

Toyota Motor Corp.'s worldwide vehicle sales for the first nine months of this year — at 7.05 million vehicles — also fell short of Detroit-based General Motors Corp.'s sales of 7.06 million.

Toyota beat GM in global vehicle sales in the first half of the year, cashing in on its reputation for high quality, low-mileage small cars such as the Camry, Corolla and gas-electric hybrid Prius.

Some analysts say it's only a matter of time before Toyota — which built its business in the decades after World War II by imitating American automakers — surpasses GM and becomes the top seller.

Toyota's global vehicle sales for the latest quarter grew 4 percent from the same period a year ago, while sales for the first nine months of the year grew 7 percent.

"With oil prices rising, Toyota has the advantage in the long run," said Yoshihiro Okumura, auto analyst at Chibagin Asset Management Co. "Toyota is making a dash to the top."

Toyota's momentum for growth is picking up as it comes out with new offerings, Okumura said. New models tend to boost sales, even though some drivers hold off until a product gets remodeled.

In August, Toyota set a global sales target of 10.4 million vehicles for 2009 — a number that would put it far ahead of the current industry record of 9.55 million vehicles sold by GM in 1978.

GM is fighting back fiercely against Toyota by boosting overseas sales. GM has worn the industry crown of No. 1 automaker for 76 years.

Soaring gas prices have helped to lift Toyota's sales, but it saw its U.S. sales dip slightly last month, partly because of a record set in the same month a year earlier.

Toyota is lowering its sales target in Japan for this year because of a stagnant market, but it has said that better than expected demand in other overseas markets will offset the domestic decline.

GM, which has been trimming jobs and cutting costs, reported last week that third-quarter global sales rose 4 percent to 2.38 million cars and trucks, led by increases in emerging markets outside the United States.

Toyota reported selling 4.72 million vehicles during the first half of the year, compared with GM's 4.67 million.

But GM still led Toyota in vehicles produced worldwide during the first half of the year. Toyota and its group companies produced 4.71 million vehicles in the first half, inching up to GM's 4.75 million vehicles.

But the race is more than about the number of cars people are buying. GM's profitability falls far short of Toyota's, which is rich in cash to invest in technology research and model development.