Takata Crisis Gives Rival Autoliv Entre to Japan Market

Autoliv Inc., already the world’s largest airbag supplier, is poised to expand in Japan, its weakest market.

Reuters notes that Autoliv’s opportunity is the result of rival Takata Corp.’s struggles to survive the deepening crisis caused by the recall of some 40 million of its airbag inflators. Within the past seven days Honda, Mazda, Nissan and Toyota each has declared it will no longer use the Takata devices.

The rejection ends Takata’s dominance in the Japanese airbag market. Autoliv supplies roughly 35% of airbag demand globally. But it currently accounts for only about 20% of Japan’s market.

Reuters says the Swedish supplier is spending about $90 million to increase capacity to make replacements for Takata’s recalled inflators.