Toyota may no longer be top automaker

Toyota Motor Co may slip to No.3 in the automaker production rankings behind General Motors and Volkswagen due to Japans earthquake and nuclear crisis,which slashed local output by almost two-thirds in March alone.

Toyota Motor Co may slip to No.3 in the automaker production rankings behind General Motors and Volkswagen due to Japans earthquake and nuclear crisis,which slashed local output by almost two-thirds in March alone.

A shortage of parts in the wake of the March 11 earthquake and tsunami has savaged Japans auto sector supply chain,while damage to a major nuclear plant has disrupted power supplies.

Investors expecting overseas rivals to benefit from a prolonged slump in Japanese output pushed up shares in South Koreas Hyundai Motors and associate Kia Motors to record highs on Monday.

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Hyundai and Kia will be the biggest beneficiaries of the struggling Japanese car industry, said Suh Sung-moon,an analyst at Korea Investment & Securities in Seoul.

Hyundai will focus on the high-end market and Kia has the capacity to boost volume shipments. Its a great mixture to catch up with Japanese rivals. Honda Motor,Japans No.3 automaker,said on Monday it would take until the end of the year before production returned to normal.

Honda,which reported domestic production shrank 62.9 percent in March,said output would be at 50 percent of its original plans until the end of June. Domestic production at Toyota fell 62.7 percent in March,while Japans No.2 Nissan Motor said its corresponding figure fell 52.4 per cent.