Akio Toyoda Sees Emerging Markets' Growth Slowing, Uncertainties in China, Japan

TTAC Staff
by TTAC Staff
akio toyoda sees emerging markets growth slowing uncertainties in china japan

Bloomberg is reporting that Akio Toyoda, president of Toyota Motor Corp. and scion of its founding family said that a slowdown in emerging markets and uncertainty over demand in both China and the Japanese home market makes 2014 “unpredictable”.

While the weaker yen increased earnings for Japanese exporters, those profits are being offset by slowing demand in India, Thailand, Brazil, and Russia. Japanese automakers also continue to face a potential repeat of Chinese consumers rejecting their products, as happened last year as tensions between those countries’ governments increased over who owns a group of Islands under dispute.

“It may be impossible” to shield against tensions between the two countries, Toyoda had told reporters earlier in December. “But we will work to minimize the impact.”

Slowing sales in emerging markets caused Honda Motor Co. to miss analysts’ forecasts for its first-half earnings this year. Nissan Motor Co., which is looking to make Mexico a hub for exports, reduced projected full-year earnings by 15 percent to reflect slower than anticipated sales in the developing world.

Toyota’s own operating profits were down in Asia, excepting Japan, in the third quarter, as Thailand ended government incentives for first-time car purchases. Akio Toyoda was pessimistic about Japan as well because of that country’s planned increase in the national sales tax rate from 5% to 8%. The Toyota president said, on behalf of JAMA, that automakers would like to see a stable yen since production cannot be shifted around the world as quickly as currency values change. The Japanese currency is currently at a five year low against the American dollar.

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6 of 12 comments
  • Lowsodium Lowsodium on Jan 02, 2014

    I can see Toyota losing market share here in the states pretty badly in the next couple years. Lots of competition in small cars, and another lackluster Tundra is going to hurt.

  • Sector 5 Sector 5 on Jan 02, 2014

    Akio Toyoda Sees Emerging Markets’ Growth Slowing, Uncertainties in China, Japan...” No Carlos here... The prez is covering his ass with the board and wants to stay a while yet.

  • Romismak Romismak on Jan 02, 2014

    Well i don´t think so, Toyota will have fine 2014, not great year but they will sell more cars than this year, in 2013 the numbers should be about 9.95m, in 2014 i expect 10.25m something like this, they will sell more in NA - which will grow again, also in Latin America, in Africa, Middle east they are biggest brand so will grow with market, in Europe their cars are popular with new hybrids and EU green technology and so on and rebounding EU market in 2014 they can´t possibly sell less... YoY numbers i mean. Yes Japan will be tough, but Japan should have been tough alredy in 2013 and look what happened market almos so big like in 2012. But o.k 2014 will be tough with new tax, but the problem here for Toyota is their market share is just to big in Japan Toyota grup is just so huge that if Japan goes down they go down even quicker. Well emerging markets - China will grow, Toyota too, don´t see problems here unless some big anti-japan riots will happen again. Brazil - In 2013 Toyota was great, with new Etios and everything they got market share from Fiat-VW and others. Russia - market down, but Toyota doing o.k, 2014 shoudl Russia grow i believe, Toyota too India - tough market.o.k they lost here but India in long term is going to be huge market Thailand - after incredible 2012 with those incentives everybody predictd market to be down, and still it is doing better than predicted. I see good 2014 for Toyota, sales down in Japan, + in all other parts of the world, because all other parts of the world should grow, NA, Latin America, Europe, Africa, Middle east, ASEAN, China, - India we will see.

    • Victor Victor on Jan 03, 2014

      Don't know where do you get your info, but the Etios is a failure in Brazil. Mr. Toyoda should be honest enough to blame not just Brazilian economics and whatnots for the weakening demand. The choice to bring the Etios instead of the Yaris was a stupid, stupid one. Nobody wants the damn thing. Ask Hyundai about Brazil and the Koreans will tell you a whole other story.

  • Big Al from Oz Big Al from Oz on Jan 02, 2014

    Here is a very good study document by the OECD on vehicle production and capacity to produce. It will give a lot of people who aren't aware of what is going on outside of their Country's borders. You can see the problem OECD economies are confronting and where the future in vehicles currently stand, globally. http://www.oecd.org/eco/Policy%20note_automobile.pdf