SEOUL, KOREA - In addition to Hyundai Motor and Kia Motors, GM and Volkswagen were also hit hard by the decline in yen's value. Unlike Japan's Toyota, which enjoyed a robust growth in operating profits in the first quarter of this year, the above-mentioned carmakers suffered a sharp decline in operating profits.
According to an analysis of the first-quarter sales performances of the four major carmakers, conducted by the Korea Economic Daily, Toyota came on top with sales of 2.43 million units. Toyota also grabbed the top spot in terms of annual sales worldwide last year with 9.75 million units. Toyota saw its first-quarter sales fall by 2.2 percent year-on-year due to sluggish domestic demand in Japan plus anti-Japan sentiments in China. Toyota, however, enjoyed a sharp increase in operating profits thanks to the yen's depreciation.
GM was affected most by Toyota's robust performance, as 38 percent of Japan's car exports were shipped to the U.S. market. GM sold 2.36 million cars in the first quarter, up 3.6 percent year-on-year thanks to the growth in sales in the U.S. and China. GM, however, saw its operating profits fall by 18.2 percent due to stiffer incentive competition with its Japanese rivals. Volkswagen also suffered a 26-percent decline in operating profits, although its sales grew by 5.1 percent to 2.27 million units.
