Toyota Australia says demand for new cars and trucks appears to be stabilising with signs of an improved sales outlook over the next few months.

The company's senior executive director sales and marketing David Buttner said consumer confidence would be helped by falling interest rates, lower fuel prices and the Federal Government's stimulus payments.

"Business demand is also likely to be underpinned by the Government's 30-per-cent investment allowance for vehicles ordered by June 30," Mr Buttner said.

"Toyota remains of the view that total industry sales will reach 850,000 this year, with second-half sales being stronger than the first six months."

Mr Buttner was commenting on official sales figures for March which showed Toyota continued as the outright market leader with 16,608 sales - more than 7,400 ahead of its nearest competitor.

Toyota's HiLux and Corolla were the second and third best-selling vehicles for the month.


Yaris, Corolla, Camry, HiLux 2WD and 4WD, Prado, LandCruiser 200 Series and HiAce van and bus were all segment leaders. Prius was the leading hybrid vehicle.

Mr Buttner said Toyota and its dealers had acted quickly to reduce vehicle stock by almost one-third from the levels being carried at the end of October.

"Toyota and our dealers are well placed as we head into the second quarter, having adjusted our plans in line with the market realities.

"While new-vehicle sales have certainly come back from the record levels being achieved in the first half of last year, consumers are responding to the value being offered across the board.

"Fortunately, our local industry is not faced with the fall-off in demand being experienced in other countries.

"As a result, we are very likely to see demand gain pace here ahead of the rest of the world," he said.