Huge new markets offer lifeline for troubled Toyota

Toyota is stricken by massive recalls in the United States and stalled sales at home, but it is not without a lifeline - big, fast-growing markets such as China and Southeast Asia where drivers seem unfazed by what is troubling consumers in the West.

The world's No 1 carmaker could certainly do with a cushion if it is going to keep its pole position in the motoring world.

Recalls of 8.5 million vehicles globally for faulty brakes, floor mats that can entangle the accelerator and sticking accelerators have battered its once stellar reputation.

Toyota's share of the US market is already nosediving and a return to profit after big losses from the global recession is imperilled by recall costs and lost sales estimated at US$2 billion.

The backlash in the US, Toyota's biggest market, has been swift and merciless. Drivers feel betrayed after being lured by promises of unmatchable quality and safety.

But in developing countries, where the scale of recalls was small, Toyota does not face such high expectations.

Vehicle safety problems tend to draw less attention in nations where consumer protection agencies are a relative innovation and compete with more pressing concerns such as ensuring basics such as clean water and uncontaminated food.

Chinese consumers are all too familiar with quality problems, thanks to a slew of scandals involving everything from tainted milk and medicine to crumbling buildings and roads.

The Government's difficulties in preventing such troubles has left many somewhat philosophical about the challenges involved.