Toyota sticks to China sales goal in tougher market

BEIJING -(Dow Jones)- Toyota Motor Corp. (7203.TO) is keeping its sales target of 700,000 vehicles in China in 2008, even as the economy of the world's second biggest car market after the U.S. slows, Managing Officer Yuzo Ushiyama said Sunday.

The target set by the Japanese car maker, which is racing to beat General Motors Corp. (GM) to the top spot in world auto sales, represents a rise of 40% on year.

Auto sales for the overall China will likely grow 14% to 10 million vehicles this year, Ushiyama said.

He said that demand for cars could slow down the road as China's runaway economy finally shows signs of cooling amid a tightening monetary policy. However, he still doesn't expect any substantial drop in demand.

"As the 40% (target) is much bigger than the overall market growth, this (goal) is challenging," Ushiyama told reporters on the sidelines of the Beijing Auto Show. "But we want to try (700,000 vehicles) as our goal."

Toyota aims to boost sales this year with a new lineup, including the recently introduced next generation Corolla and the remodeled Vios small car as well as the Yaris compact it plans to introduce by the end of May.

In the longer term, Toyota is aiming for annual sales of 1 million vehicles in China as early as 2010.

Toyota operates the Tianjin FAW Toyota Motor Co. joint venture with FAW Group Corp., and Guangzhou Toyota Motor Co. with Guangzhou Automobile Group Co.