June 24 (Bloomberg) -- Toyota Motor Corp., the world's second-largest carmaker, may cut its 2008 sales target as higher gasoline prices reduce demand in the U.S.

Meeting the company's forecast of selling 2.64 million vehicles in the U.S., its biggest market, this year will be difficult, Executive Vice President Tokuichi Uranishi said at a shareholders meeting in Toyota City, Japan today. The company will review its overall target next month, he said.

Toyota's lead in fuel-efficient cars hasn't been sufficient to shield it from a slump in U.S. sales of larger vehicles. The company has cut production of Tundra trucks twice because of a 22 percent drop in sales of large pickups including Ford Motor Co.'s F-150 and General Motors Corp.'s Chevrolet Silverado through May this year.

``The U.S. market is really severe right now,'' said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo, which oversees $28 billion in assets. ``Even Toyota can't get away from the U.S. car market slump.''

Toyota fell 1.5 percent to 5,230 yen at the close of trading in Tokyo. The shares have declined 13 percent so far this year.

U.S. auto sales dropped 8.5 percent in the first five months, led by the slump in demand for large pickups. Toyota's U.S. truck sales fell 7.3 percent in the period. The average price of gasoline has surged to a record of more than $4 a gallon.

Struggling in U.S.

``We are struggling in the U.S. at the moment,'' Uranishi said, speaking to about 3,200 shareholders at the company's annual meeting. ``Higher fuel prices and the subprime loan crisis have cut demand.''

Toyota's U.S. sales through May dropped 3.5 percent. In contrast, GM's sales plunged 15.8 percent, dragged down by a 22 percent decline in truck sales. Ford's sales dropped 11 percent in the period.

GM said yesterday that it would trim North American truck production by an additional 170,000 vehicles this year and offer no-interest loans on many 2008 models in a bid to boost sales. Ford, the No. 2 U.S. automaker, has also announced production cuts and is forecasting a wider full-year loss.

Overall U.S. auto sales may fall below 15 million vehicles this year, Uranishi said. That would be the lowest since 1995. Nissan Motor Co. Chief Executive Officer Carlos Ghosn and analysts at companies such as J.D. Power & Associates have also made similar forecasts.

Toyota predicted in December it would sell 8.84 million Toyota-brand and Lexus-brand vehicles globally this year, an increase of 5 percent from 2007.

The automaker is counting on growth in Russia, China, India and other emerging markets to offset lower demand in the U.S. The company has raised production every month this year as it expands output at overseas factories.

To contact the reporters on this story: Naoko Fujimura in Toyota City, Japan at nfujimura@bloomberg.net; Tetsuya Komatsu in Tokyo at tekomatsu@bloomberg.net

Last Updated: June 24, 2008 05:11 EDT