Fortunes Across the Sea of Japan
For the past few months, the Toyota car company has been an active player in the automotive industry. In November 2009, it reportedly expanded its business in Korea. In addition to this, the company has also experienced satisfactory sales in the past months.
Last October 2009, Toyota succeeded in attaining its goal of selling 500 Camry sedans, Prius, as well as RAV 4 SUVs in Korea. The company beat their target despite having a slight delay in the scheduled date when they were supposed to start selling. At present, the car company has received orders of approximately 6,600 vehicles. Toyota is currently working towards completing the orders. Upon its completion, the Japanese automaker will then achieve its annual sales plan for Korea. Moreover, the aforementioned figures do not include Toyota’s luxury Marque and Lexus.
Toyota’s sales in Korea started to increase as Hyundai began to pull out their car sales in Japan. According to some of the company’s representatives, Hyundai Motor has chosen to suspend their passenger vehicle sales in Japan in favor of allocating more resources towards the company’s commercial vehicle sales in Japan.
Hyundai Motor’s decision to quit passenger car sales in the country can be considered as a sensible move made by the company, just like Toyota’s business expansion in Korea. During the devastating global economic downturn, the company was able to outpace other Japanese automakers. For the month of October 2009, the company was said to have sold more than 780 cars, including Kia.
There are several factors that contribute to why Hyundai Motors has chosen to go this direction. Basically, one of the main reasons is that more than a third of Japan’s total car sales are made up of 660cc mini-vehicles. That, as well as protectionism and a few other factors such as European competitors, have contributed much to Hyundai’s decision to pull out their passenger car sales in the country.