By Agnieszka Flak and Laurence Frost
PARIS (Reuters) - Toyota Motor Corp (T:7203) expects to ride out the worst effects of the slump in Russia's car market, a senior executive said at the Paris auto show, and is sticking to its target of increasing sales to a million vehicles in Europe next year.
Though Russia's car sales this year could drop to their lowest level since the financial crisis as Western sanctions over Ukraine weaken the economy further, Toyota says its focus on higher-end vehicles will help to keep its Russian numbers steady this year.
Once the European market leader, the Espace is now one of the laggards of its category, far behind the Ford (N:F) S-Max, which struck out in a sportier direction from its 2006 introduction and is unveiling another timely update in Paris.
"It's a global shift affecting even family vehicles, and it is here to stay," Societe Generale analyst Philippe Barrier said. "Designers are having to compromise as people look for something sportier."
Daimler (DE:DAIGn), meanwhile, said it will introduce 10 new hybrid vehicles by 2017, with Chief Executive Dieter Zetsche saying that electric cars have so far failed to gain widespread acceptance.
"They are an exciting concept but have a rather slow market adoption rate," he said on the eve of the Paris show. "A plug-in hybrid is the easy-entry version for those who are still a little uncomfortable with electric cars."
(Reporting by Agnieszka Flak, Laurence Frost, Andreas Cremer and Edward Taylor; Writing by David Goodman/editing by Keith Weir)