Competition
Though Toyota was still the #1 automaker in mid-2013, its position was coming under threat from a resurgent GM and Ford in the US market. Competition was catching up in the hybrid car market too. In its home market, the company was hit hard in late 2012, after government incentives for consumers to buy fuel-efficient models expired. In 2013, the Yen declined more than 12% against the dollar. In emerging markets, Toyota had to contend with intense competition from other Japanese companies such as Nissan, Honda, and Suzuki, some of which had managed to entrench themselves in key emerging markets. Companies such as GM and Germany-based Volkwagen were also pushing ahead with their own emerging strategies. In 2012, Volkswagen became the most profitable automaker in the world with an operating income of €11.5 billion (US$15 billion). The company had announced plans to invest €10.3billion (US$13.6 billion) to expand production in China between 2011 and 2015. In 2012, Volkswagen had an 18% market share in China, 22% in Brazil, 9% in Russia, and below 5% in India. Though Toyota was the largest player in Thailand and Indonesia, in China, it had been pushed to the fifth position behind GM, Volkswagen, Nissan, and Hyundai.
CompetitionThough Toyota was still the #1 automaker in mid-2013, its position was coming under threat from a resurgent GM and Ford in the US market. Competition was catching up in the hybrid car market too. In its home market, the company was hit hard in late 2012, after government incentives for consumers to buy fuel-efficient models expired. In 2013, the Yen declined more than 12% against the dollar. In emerging markets, Toyota had to contend with intense competition from other Japanese companies such as Nissan, Honda, and Suzuki, some of which had managed to entrench themselves in key emerging markets. Companies such as GM and Germany-based Volkwagen were also pushing ahead with their own emerging strategies. In 2012, Volkswagen became the most profitable automaker in the world with an operating income of €11.5 billion (US$15 billion). The company had announced plans to invest €10.3billion (US$13.6 billion) to expand production in China between 2011 and 2015. In 2012, Volkswagen had an 18% market share in China, 22% in Brazil, 9% in Russia, and below 5% in India. Though Toyota was the largest player in Thailand and Indonesia, in China, it had been pushed to the fifth position behind GM, Volkswagen, Nissan, and Hyundai.
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