Toyota Motor Corporation's joint venture in China, FAW Toyota, is finding it tough to do good business in the Chinese market and the company has now reduced its future sales outlook in the region by 40,000 vehicles, reported The Wall Street Journal.

The report added that FAW decided to slash estimates despite recording an increase in August sales of 8%, to 342,900 vehicles.

The FAW Toyota has brought down its sales estimates from 660,000 vehicles to 620,000 vehicles on the back of troubles arising from high inventory with dealers and a struggling economy. The Japanese automobile maker operates under two joint ventures in China: FAW and GAC. Unlike FAW, GAC will not be reducing sales estimates.

Chinese auto market in is among the fastest-growing in the world with passenger vehicle sales registering 13% increase from May to June, totaling up to 1.5 million car deliveries. Chinese brands registered a 21.5% increase in the same month, followed by a 28.7% increase in German brands. But the target set by Toyota is completely different from what the entire auto market is talking about.
This is not a good news for Toyota as rival automakers are making efforts to grab the Chinese auto market. Several car makers have increased their investment in the region in order to make profit.

For example, Volkswagen AG is set to enter the Chinese luxury market with its new luxury sedan, under its flagship brand. BMW will also be launching its electric car in China, followed by Nissan Motor Co. Ltd, which is also planning to enter the Chinese market.