Impact of Economic Factors on Toyota Vehicle Demand (2010-2014)

This report delves into the business economics of Toyota's vehicle demand, focusing on the period from 2010 to 2014 in the international market. The study examines how factors such as price, consumer income, the price of related products, consumer preferences, and expectations have influenced the demand for Toyota vehicles. It highlights the significance of these factors in shaping the demand for Toyota, particularly in markets where used vehicles are popular. The analysis includes a discussion of demand determinants, elasticity of demand, and their impact on the company's profitability. The report uses sales data and figures to illustrate market trends, including the increasing popularity of used cars and the influence of consumer preferences for specific vehicle types. The conclusion emphasizes the importance of adapting production and marketing strategies to meet the evolving demands of international markets and enhance Toyota's market position. The report also includes references to the sources used for data and information.

BUSINESS ECONOMICS

INTRODUCTION
•The main aim of this study is to highlight the
development of better marketing of TOYOTA as the
international company and how the factors like price,
income, price of related products, customer
preferences and the expectations are playing in
increasing the demand of the vehicles in the country
from 2010-2014.
•The study is important in the sense that it will
definitely highlight the indulgence of the above-
mentioned factors that will definitely point out the
demand of the economy for the Toyota vehicles.
•The study will also include factors of demand and
how they are going to have influence and impact on
the demand of Toyota.
•Elasticity of demand will be considered so that the
study will be able to identify the factors of elasticity
and how they are having strong impact on the
profitability of the company

CRITICALLY DISCUSSING DEMAND OF TOYOTA
AGAINST THE DEMAND THEORY
•The annual sales of the Toyota vehicles are not making
that required level of the profitability. The international
market vehicle market is showing one of the special
characteristics. Two of the Japanese’ car manufacturing
companies are Toyota and Nissan.
•The used car market is gaining is huge popularity among
the people living in the countries like UK, China.
Considering the factor of consumer preference the country
prefers the use of Toyota and Nissan pickup trucks mainly
due to hilly terrains. Along with the pickup trucks, the
station wagon is also highly preferred
•Considering the fact that the economy is not yet
developed, thus the market of used vehicles is more
preferred for the people living there. Market of used
vehicles is in high demand because of the fact that
the consumers in the international market can
purchase the pickup trucks and station wagons at a
cheap price.
2010
2011
2012
2013
2014
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
4,9965,559
10,939
15,310
14,599
Sales volume of
used cars
Sales volume
Figure 1: Sales volume of used car
market of Toyota
(Source: Info.japanesecartrade.com,
2019)

EXPLAINING THE DETERMINANTS OF TOYOTA’S DETERMINANTS
OF DEMAND ACTUALLY INTERACT AND INFLUENCE EACH
OTHER
•One of the major factors of demand is price of goods and in
international economies, and the price of the cars is much
affordable and in the global automobile market, the
consumers are preferring their products mainly due to the
innovation in the technologies in their vehicles.
•Income of the consumers is one of the important factor in the
sense that it will determine the quantity of the automobile
purchased .
•The preference of the consumers is towards the pickup trucks
and spot wagons. Due to mountainous demography, the
companies are building more of trucks and spot wagons
•Price of the related products will be crucial in the sense that it
will be indulging the consumers to compare among other
companies manufacturing vehicles
•Expectation of the consumers is going to help the company in
identifying the various factors that will be helping the Toyota
to increase the production . .
Figure 2: Increased demand for
used vehicles
(Source: Created by Author)

EXPLAINING ELASTICITY OF DEMAND AND EXPLAIN HOW
THE DIFFERENT TYPES SHOW RESPONSIVENESS
RELATED TO TOYOTA AND MORE IMPORTANTLY THE TYPE
OF GOODS AND ITS INFLUENCE ON PROFITABILITY
•The market of the vehicles is falling within the luxurious
products, and it is important to understand the effect of the
elasticity and for the luxurious goods, the elasticity is always
greater than 1.
•The consumers of Toyota is
actually responding to the low
income of them by importing
used vehicles from major parts of
the world in order to minimize
the burden of tax.
•The government is also allowing
the import of the vehicles only by
1 number per 3 year.
Figure 3: Elasticity diagram

CONCLUSION
•The study is showing that in order to
increase the development of better
innovations in the production of the Toyota
cars in the economy of international
markets
•The study has highlighted factors of
demand in the form of price that is having
impact on the development of vehicle
market.

REFERENCE LIST
•https://focus2move.com. (2018). Focus2move| Trinidad and Tobago
Car Market - Data & Facts 2017. [online] Available at:
https://focus2move.com/trinidad-and-tobago-car-market/ [Accessed
9 Apr. 2019].
•Info.japanesecartrade.com. (2019). Trinidad and Tobago used car
market. [online] Available at:
https://info.japanesecartrade.com/content-item/330-trinidad-and-
tobago-used-car-market [Accessed 9 Apr. 2019].
•Toyota-trinidad.com. (2019). Cars, Pickup Trucks, SUVs, Hybrids
and Crossovers | Toyota Official Site. [online] Available at:
http://www.toyota-trinidad.com/why-toyota/genuine-toyota-for-
trinidad-and-tobago/ [Accessed 9 Apr. 2019].
•Ttautoguide.com. (2019). Toyota Trinidad & Tobago Limited |
TTAutoGuide.com. [online] Available at:
https://www.ttautoguide.com/dealers/toyota-trinidad-tobago-limited/
[Accessed 9 Apr. 2019].