The global auto market next year is expected to see the rise of Japanese carmakers, taking advantage of a cheaper yen and a transition to a new modular platform aimed at producing better cars at lower costs, a Hyundai Motor executive said Thursday.

Park Hong-jae, vice president of Hyundai Motor’s global economic institute was referring to Toyota New Global Architecture, a platform sharing strategy designed to lower the production costs and enhance the quality of engine and power trains instead. 

The shift in production strategy will place the Japanese carmaker at a favorable position, which has been competing with Hyundai Motor in terms of price competitiveness and Volkswagen in quality. 



“The biggest challenge Hyundai Motor will be facing next year will be Japanese carmakers taking a stronger position in the market with vehicles in enhanced quality and a cheaper yen,” said Park in a seminar in Seoul, pointing out the planned roll out of Toyota’s Camry next year.

Amid intensifying geopolitical risks and slowing economy, the global auto market is expected to grow 1.9 percent next year in the slowest pace since the 2008 financial crisis.

“The growth of the global auto market appears to have reached a plateau,” he said.

“With the growth of Chinese market slowing next year at 4 percent (from 15 percent this year), the global market is likely to have no strong force to take the lead in growth.”

The rise of oil price will partly boost stagnant markets in Russia and the Middle East. In terms of segments, demand for sports utility vehicles will continue.

Car sales in South Korea are expected to drop further to 3.5 percent next year, due to economic contraction and no sales tax benefit planned ahead.

By Cho Chung-un (christory@heraldcorp.com)