Japanese carmakers reducing output in China over continued protests

Article by Anita Panait, on September 27, 2012

Japanese carmakers, including Toyota Motor Corp. and Nissan Motor Co., are slashing their output in China as anti-Japan protests continued to affect dealerships and dampened their sales forecasts in the Asian country, which is currently considered as the world’s largest auto market. It is typical for the members of the auto industry to slow down production in mature markets like the United States and Japan in order to maintain a certain inventory level and to avoid offering deep discounts that could affect profitability.

The latest moves of Japanese carmakers to cut their Chinese production, however, is considered as peculiar in a market that has contributed much to the global growth of the auto industry for the past decade. It should also be noted that most carmakers had been adding capacity in China until the market experienced some slowdown this year.

The economic slowdown in China has forced the car supply to overtake demand, resulting in higher inventory levels in many car dealers in the country. Koji Endo, auto analyst at Advanced Research Japan, remarked that for the time being, sales of Japanese carmakers in China will be down by 20 to 30 percent. Endo noted that during the previous protests, which occurred in 2010, the effects only lasted about a month.

He quipped that the current protest would have a “serious impact.” Nissan, the largest Japanese carmaker in China, announced it would stop production at a Chinese joint venture starting Thursday. The stoppage would last through next week's national holiday period. Toyota, meanwhile, is suspending production at its Tianjin and Guangzhou plant through the holiday, according to spokeswoman Shino Yamada. Both production stoppages were started a few days earlier than planned.

Topics: japan, china

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Acura fans and customers rejoice! Sales have begun for the flagship model of Acura’s RLX top-of-the-range sedan – the 2017 Acura RLX Sport Hybrid. Described by Acura as its most...
by - December 6, 2016
Autonomous cars are slowly but surely gaining more appeal among drivers around the world. While a complete self-driving system has yet to be launched, carmakers have been finding ways to...
by - December 6, 2016
BMW has officially ended the production cycle for what is considered as its meanest and fastest sports car – the BMW M4 GTS. Basically a power-up evolution of the BMW...
by - December 6, 2016
Now that Lamborghini is set to bring a “more aggressive” Aventador, it only makes sense that it will be given a name. Seeing how it goes, perhaps we won’t be...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries