By Alimat Aliyeva
South Korean automakers may have an opportunity to increase
their market share in major overseas markets as Japanese
competitors struggle with declining sales, rising costs, and
production disruptions caused by a powerful earthquake, industry
experts say, AzerNEWS reports, citing Korean media.
Toyota Motor Corporation, the world’s largest automaker by sales
volume, is expected to report second-quarter operating profit of
around $7.04 billion, according to analysts’ estimates compiled by
Reuters. This would represent a 5% decline compared with the same
period last year and mark Toyota’s fifth consecutive quarter of
lower year-on-year operating profit.
Toyota has experienced weaker sales in several important
markets. According to market estimates, the company’s sales dropped
by about 30% in China and the Middle East and by approximately 16%
in Oceania. In addition, higher supply chain costs connected to
geopolitical tensions, including the Iran conflict, have put
further pressure on the company’s profitability.
The situation has been made more difficult by production
disruptions following a major earthquake in Kumamoto, Japan.
Toyota, Nissan Motor, Mitsubishi Motors, and Daihatsu Motor
temporarily suspended operations at several factories, according to
Japanese media reports.
Even factories that avoided direct damage have faced
difficulties because key suppliers, including Aisin Corporation and
Renesas Electronics Corporation, experienced disruptions. Since
modern car production relies on complex global supply chains,
problems at a small number of suppliers can affect entire
manufacturing networks.
The production delays are expected to impact several popular
export models for the US market, including Toyota’s 4Runner SUV,
Nissan’s Rogue crossover, Lexus NX, and Infiniti QX80. Japanese
automakers have not yet announced a clear timeline for a full
production recovery, while thousands of vehicles are expected to be
affected by the delays.
Meanwhile, South Korean companies Hyundai Motor and Kia are
strengthening their position in the North American market,
supported by growing demand for hybrid vehicles and SUVs.
The two companies sold a combined 616,491 vehicles worldwide in
July, representing a 3% increase compared with the previous year.
In the United States, their combined sales reached 165,284
vehicles, up 5%. Hybrid vehicle sales were especially strong,
increasing by more than 50% and becoming one of the main drivers of
growth.
Industry analysts believe that the combination of Japanese
production problems, higher costs, and changing consumer demand
could create new opportunities for Korean automakers. Hyundai and
Kia have invested heavily in local production facilities in the
United States and expanded their range of electric, hybrid, and SUV
models.
“Hyundai Motor Group has improved its ability to respond to
market changes by increasing local production and strengthening its
hybrid and SUV lineup,” an industry source said. “If disruptions at
Japanese automakers continue, Hyundai and Kia could attract
customers looking for alternative brands.”
The competition between Japanese and Korean carmakers highlights
a broader shift in the global auto industry, where supply chain
stability, electric and hybrid technology, and regional
manufacturing capacity are becoming just as important as
traditional brand reputation.