The Russian market is clearly stratified in terms of price bands and usage scenarios. The supply of China brands in the new market is more stable, while the second-hand market has long relied on the reputation and stock system of Japanese car sources...

According to Nikkei, Toyota Motor will cut its complete vehicle supply plan to the Middle East market, and is expected to reduce production by nearly 40,000 units in March and April. The report quoted sources as saying that Toyota had notified parts suppliers about the adjusted production arrangements. The direct reason for the production reduction was logistics concerns surrounding the escalation of the situation in Iran, especially the disturbance in transportation in the Strait of Hormuz, a key shipping channel.

The Nikkei pointed out that the Strait of Hormuz is located between Iran and Oman and is an important "throat" channel for import and export from the Middle East. Once there is an interruption or delay in the shipping link, the pace of complete vehicle exports will be forced to reschedule. The production cut will mainly affect best-selling products in the Middle East market, including SUVs such as Toyota Land Cruiser, as well as some sedans and commercial vans (van) and other models. The report also mentioned that the scale of this reduction accounts for a large proportion of Toyota's monthly exports, and its short-term impact on regional supply cannot be ignored.

[Brief Comment] For China's auto exporters, Toyota's contraction of supply in the Middle East may bring about two types of chain reactions: First, the delivery cycle of popular models represented by Land Cruises will be prolonged, and terminal bargaining power will increase. Regional markets will be more prone to "car shortages" and premiums in the short term; Second, rising shipping and war insurance costs will affect all brands at the same time, and the Middle East will not automatically become a "low-risk incremental market" because of Japanese production cuts. If China brands want to take over these potential vacancies, a more realistic starting point is to make delivery certainty-lock cabin, lock insurance, lock port operation windows, and at the same time clarify force majeure and freight/premium fluctuations in the contract terms. Allocation mechanism. Supply gaps are opportunities, but in the current geographical environment,"being able to arrive in Hong Kong on time" will itself become competitiveness.

Sources of information:https://m.economictimes.com/news/international/business/to-motor-to-cut-middle-east-output-by-nearly-40000-vehicles-nikkei-reports/amp_articleshow/129098624.cms

Source: Guangdong Good Car

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