Toyota expects further slowdown in emerging markets in 2014

Article by Anita Panait, on January 3, 2014

Japan Automobile Manufacturers Association (JAMA) expects the slowdown in emerging markets to continue in 2014. “A deceleration is seen in emerging markets that have been growing rapidly until now,” Akio Toyoda, president of Toyota Motor Corp. and chairman of the association, said in a statement, adding that the situation for 2014 is “unpredictable.”

Emerging markets like India, Thailand, Brazil and Russia have been experiencing slowing demand, thus possibly offsetting the positive effect on earnings brought by the weakening yen.

Japanese carmakers are also bracing themselves for consumer backlash in China after Japan Prime Minister Shinzo Abe visited a war shrine in Tokyo.

There is an ongoing row between the two nations over a group of disputed islands. Toyoda remarked last month that while “it may be impossible” to shield against the increasing tensions between Japan and China, they will work to minimize the impact.

A slump in sales in developing nations has caused Honda Motor Co. to miss analysts’ expectations for its first-half earnings. Nissan Motor Co has trimmed its expectation for full-year earnings by around 15 percent, reflecting worse-than-expected sales in emerging markets.

Toyota’s operating profit suffered a slump in Asia, excluding Japan in the last quarter, no thanks to slowing demand Thailand where the government has terminated its rebates for first-time car purchases.

Toyoda remarked that he isn’t optimistic about Japan’s vehicle market this year as the country is due to increase sales tax effective April 1 from the current 5 percent to 8 percent. The rate is expected to be raised again in 2015 to 10 percent.

Topics: toyota, sales

If you liked the article, share on:

Comments

Recommended

Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries