Akio Toyoda Predicts Falling Sales in Emerging Markets for 2014

ToyotaToyotaJapan, 1937 > present155 models
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briefly held the position as the world’s largest automaker before the global economic recession and tsunami in Southeast Asia caused a significant drop in sales. While it has mostly rebounded since then, Toyota is still struggling in China like most Japanese automakers because of political fantasies between the two countries. Akio Toyoda, president of Toyota, predicts that the trend will continue into 2014.

“A deceleration is seen in emerging markets that have been growing rapidly until now. This year, the situation is unpredictable,” said Toyoda.

In addition to weakened demand in China, Toyoda believes that Toyota will also face falling demand in India, Thailand, Brazil and Russia. However, the weakening of the Japanese yen against international currencies means that profits are not decreasing significantly.

Toyota is not the only automaker seeing a drop in emerging market sales. HondaHondaJapan, 1948 > present102 models
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and NissanNissanJapan, 1932 > present159 models
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are both predicting falling sales there as well.

Even growing sales in Japan are not assured in 2014. Japan will increase sales tax on all goods from 5% to 8% on April 1, and it is expected to decrease auto demand.

Source: Automotive News