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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.
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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.
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