Toyota to expand U.S. parts business-paper

NEW YORK, May 30 Reuters reported Japanese auto giant Toyota Motor Corp.plans to expand its share of the growing auto parts replacement business in North America by introducing products that are 40 percent cheaper than existing parts, the Nihon Keizai Shimbun reported.

The new Advantex brand will initially comprise eight replacement parts including brake-related products and automotive air conditioner parts, the Japanese financial daily said in its Friday online edition.

Toyota North America officials were not immediately available to comment.

Toyota aims to boost its market share of 1 to 2 percent in the $153 billion U.S. auto parts aftermarket, which is growing at an annual rate of 3 percent, the newspaper said.

The automaker hopes the expansion will also help raise its U.S. market share of new vehicle sales from the current 10 percent level, the paper said.

Toyota is already testing sales of Advantex parts at affiliated dealers in Thailand and is considering handling them at its affiliated U.S. companies.

In Japan, Toyota's 10 percent share in the repair parts market lags rivals such as Yellow Hat Ltd. (Tokyo:9982.T - News).

Separately, the Nikkei said without citing sources that Japan's major steelmakers plan to seek increases in steel sheet prices paid by domestic automakers of about 10 percent as early as later this year.

A hike in prices by their largest clients would be the first since 1997, the paper said, and a boon for steelmakers hit by the recession, shaky exports and fierce competition from South Korean and Chinese rivals.