As Toyota hits a speed bump in high-growth emerging markets, which account for about 40 percent of global sales, does the world's largest automaker have what it takes to hold on to its crown?
The Japanese auto giant on Tuesday reported a 4.6 percent rise in profit to $5.72 billion for the April-June quarter, as softness in markets such as Thailand, Japan, India, Indonesia and Brazil offset strength in the U.S. and Europe.
Sales climbed 3 percent in North America and 7 percent in Europe during the quarter, helped by improving economic conditions, but dropped 2 percent in Asia outside Japan, according to calculations by the Wall Street Journal.
Jason Moser, analyst at Motley Fool says while emerging markets are a headwind for Toyota, the carmaker's reputation for quality products and broad product line-up in developed markets will help it retain its leading position.
"Toyota has been able to recover some pretty big recall missteps recently, which is historically tough to overcome...they have a global foot print and continue to bring product to market that consumers want - that's really the key," Moser told CNBC.
In September, Toyota plans to begin selling a reworked Camry to deliver a boost to what has been the top-selling car in the U.S. market for the last 12 years.