You tagged this with "Canada" so I'm going to assume you are in an area that freezes. That being the case, I don't think it's any coincidence that this is directly below a gap between the roof line and the end of the gutter.
I believe water is making its way down between those and infiltrating into and behind the siding material and then freezing there and cracking it.
Before you try to fix this you will want to address the root problem. Next you will want to correct any damage behind it which, unfortunately, means tearing part of this siding material off. I believe you will find significant water damage needing repair.
In my opinion a home inspector should have caught this and flagged it as a potential problem.