Sales target cut rocks Toyota

Shares in Toyota fell to their lowest in almost three years today on reports that it will cut its sales target for the year.

Hit hard by a downturn in sales in the US, the firm is expected to reduce expectations by 350,000 vehicles to 9.5 million.

US sales fell 6.8% in the first half of the year, with trucks dropping 13%.

If the trend continues, Toyota will see its first annual sales decline in the US since 1995.

While its more fuelefficient cars, particularly the hybrid petrol-electric Prius, have been doing well, the company has struggled to keep up with demand.

Toyota would not confirm the report but a spokesman did say it "is now reviewing its 2008 plans including sales and production but nothing has been decided".

Last month executive vice president Tokuichi Uranishi said meeting the company's forecast of selling 2.64 million vehicles in the US, its biggest market, this year will be difficult.