November 2013 Sales Conference Notes

November 2013 Sales Conference Call
Tuesday, December 3, 2013

November 2013 Sales Conference Call (audio clip)

Toyota Motor Sales Vice President of Corporate Communications Mike Michels:

Hello everyone and thank you for joining us to review the November sales results for Toyota, Scion and Lexus.

Speaking today will be:

Bill Fay, Toyota Division Group Vice President and General Manager;
And Jeff Bracken, Lexus Group Vice President and General Manager.

Following the call, our communications team will be available to field any additional questions you may have.

Now I’d like to turn it over to Bill for a review of our corporate and Toyota Division results in November.

Toyota Division Group Vice President and General Manager Bill Fay:

Thank you Mike… and thanks everyone for joining us today.

Hope you all had a good Thanksgiving Weekend.

Industry

Had a good month with a great close in November

Fairly Typical for the month

Much of the action took place after Thanksgiving
More than 25% of our sales came during the final weekend
Up more than 20% over last year’s Thanksgiving weekend

Total Industry Sales

About 1.24 million vehicles sold
Up 8.9% from last year
- Unadjusted, volume basis

November SAAR 16.4 million

That’s the best month this year
Industry’s best sales pace since February, 2007

That’s even more impressive

Replacement sales last year following Hurricane Sandy helped boost the industry to its highest SAAR of 2012 (15.4)

YTD industry SAAR 15.6

A little stronger than our year-end target
Industry will probably exceed
If momentum we saw over Thanksgiving continues

Toyota, Scion and Lexus

178,044
Up 10.1% from last year
Best November since 2007
- before the recession

TMS #1 retail manufacturer

Fleet sales made up just 5-and-a-half% of mix
YTD fleet sales stand at 9% of our total sales
- (Down from 10% at this point last year)

Now for a look at Toyota Division in November

Sales of 152,433
Up 9.7%
#1 retail brand for the month

Camry

Volume leader
Sales of more than 30,000 units
Up 5.6%

Corolla launch continues on track

More than 22,400 sold
On par with last year
Still building inventory on the new car

Avalon

Still selling like a new car nearly one year after its launch
Sales nearly quadrupled in November
More than 5,800 units
Hybrid making up more than a quarter of the total

Prius Family

Sales topped 16,000
Remains ahead of last year on CYTD basis

Toyota Division Hybrid Sales

Up slightly for the month
Up 6-and-a-half % for the year
Account for more than half of all hybrids sold in America

Perhaps our biggest November story is on the truck side

Where compact SUVs or crossovers
Hottest volume segment in the industry right now
One of the hottest models is the new RAV4

RAV4

Best November ever
Sales nearly 19,500
Up 56.5% for the month
Up 25% for the year

Also setting a new November mark

Highlander
Sales of more than 11,500
Up 22%

New Tundra led an increase in pickup truck sales

Topped 10,000 units
- Second time this year
- Up 20.5% for the month

Combined with Tacoma

Which had sales of more than 12,600

Total pickup sales

22,600
Up 10% for the month
More than 13.5% for the year

Finally, Toyota Certified Used Vehicles

Sold nearly 31,000 vehicles
New November record
Strength of used vehicle sales is retained value
Reinforced in November
Kelly Blue Book named Toyota
- Best resale brand
- Third straight year
- Industry leading six segment winning vehicles
Toyota also earned eight Residual Value Awards from ALG
- More than any other brand

Looking ahead

Big Thanksgiving weekend
Bodes well for a strong close to the year for the industry

At Toyota

The annual year-end ToyotaThon just getting underway
Will peak the week between Christmas and New Years
- When more than half of the sales for the month will be made

Good inventories

Including hot new models Corolla, Avalon, RAV4, Tundra

Along with available low financing and lease rates

Provide the best deals of the year

Thank you again for joining us today. Now I’d like to turn this over to Jeff for a look at Lexus.

Lexus Group Vice President and General Manager Jeff Bracken:
Thank you Bill.

At Lexus

Also had a great close to the month
Sales up 35% over Thanksgiving Weekend compared to last year

For the month
Sales totaled 25,611
Up 12.7%
Outperforming both the luxury segment
And overall industry

YTD

Sales of nearly 240,000
Up 12%
On target for our goal of 270,000 this year

Beginning to sound like a broken record

The new IS was way up again in November
- As sales doubled
- To nearly 4,000
- Second-best month of the year
Continues to attract youngest buyers in luxury segment (44)
Half of all buyers are new to Lexus family

ES sales of 6,300

Up 4% for the month
Up 33% for the year

LS sales topped 1,000

Now Up 37% CYD
Closing in on 10,000 for the year

November another big month for luxury SUVs

Both GX and LX had their best months of the year
RX had its second best month of 2013

RX remains the luxury industry’s SUV leader

Sales of nearly 9,500 in November
Up 7%; hybrid up more than 9%
Up nearly 10% for the year

New GX

1,700
Up 70%

The LX570

Up 33%

Lexus Certified Pre-Owned

Set a record for the month
Up 5,700
7th monthly record this year
Named best luxury brand for best resale value by Kelly Blue Book
- Third straight year
- Six segment winner

Looking ahead