Japan’s Carmakers Look for Sales in Asia as U.S. Tariffs Loom
Japanese carmakers aim to boost sales in Asia to counter a slump in the U.S. if the Trump administration imposes 25% tariffs on foreign-made cars, The Nikkei reports.
#economics
Japanese carmakers aim to boost sales in Asia to counter a slump in the U.S. if the Trump administration imposes 25% tariffs on foreign-made cars, The Nikkei reports.
President Donald Trump has vowed to impose the tax to pressure foreign carmakers to open more factories in the U.S. Toyota estimates that a 25% tariff would inflate the average selling price of the 700,000 vehicles it ships to the U.S. each year by $6,000.
Toyota intends to offset the sales decline that would result from the tax by hiking sales in Thailand 25% to 300,000 units this year. The strategy hiked company’s operating profit in the country 40% in April-June.
Over the same period, demand for Honda’s motorcycles in southeast Asia drove an 11% gain in the company’s global operating profits. The Nikkei says Honda is successfully coaxing customers to switch from motorbikes to entry-level cars in growing markets such as Thailand.
Similarly, Suzuki has set a target of tripling its annual sales in India to 5 million cars by 2030. The company also plans to use India as an export hub for the African market.
RELATED CONTENT
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.