Sales of Japanese-brand autos in South Korea slumped in July amid the worsening diplomatic row that has led to consumer boycotts and efforts by Seoul to cut the economy's reliance on imports from Japan.
Industry data out of South Korea on Monday showed Toyota Motor Corp. sales tumbled 32 percent from a year earlier and Honda Motor Co.'s sales skidded 34 percent.
Although automakers are still assessing the main factors driving the declines last month, industry participants worry declining sales will continue in August as diplomatic tensions grow.