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Major Japanese car manufacturers are under suspicion of manipulating safety data, leading to a government investigation into companies like Toyota, as well as Honda, Mazda, and Suzuki.
Some companies have had to halt shipments or sales of certain vehicles due to violations such as providing false data, conducting tests under inappropriate conditions, and tampering with crash test results.
In the first five months of 2024, cars made up 17.8 percent of Japan's total exports.
Toyota holds a leading position in the global automobile market, accounting for over 11 percent of the total sales of more than 80 million vehicles worldwide in 2022.
How will this impact Saudi Arabia? Japanese, Korean, and Chinese car brands dominate the market with over 50 percent of sales.
According to a report from the Saudi Industrial Centre, Toyota is the top-selling brand with a 29 percent market share.
This makes the Kingdom an important market for Japanese car exports, with imports totaling $2.6 billion in 2022.
Murad Al-Jarrah, former director general of a prominent car sales company, predicts that this scandal will affect the prices of Toyota and Japanese cars in general.
Consumer confidence is expected to decrease due to the falsified safety data, impacting trust in the brand. Additionally, increased regulatory scrutiny may lead to higher inspection and testing requirements for Toyota vehicles in Saudi Arabia, potentially increasing costs for consumers.
Furthermore, Toyota may have to recall and repair affected vehicles in the country, resulting in significant costs that could be passed on to consumers through higher prices.
