Japanese Car Sales Plummets in China Amidst Island Row
Created: 2012-10-09 10:39 EST
China may be the world’s largest auto market, but Japanese car makers are having a tough time there. The heated stand-off between the two countries over the Diaoyu/Senkaku Islands has dealt a heavy blow to sales.
Japan’s largest automaker Toyota reported today a nearly 50% drop in sales for September, compared to last year. Honda says it has lost just over 40% in sales. Nissan recorded a drop of 35%.
The poor sales means these Japanese car makers are having to pull back production. Reuters reports that Toyota could cut production until November, indicating that the impact of the islands dispute may remain for some time.
Last month, after Japan declared it would try to purchase the small island chains in the East China Sea, violent anti-Japanese riots erupted through China. Japanese products, including cars, became targets for angry protestors.
The islands disputes haven’t been bad news for everyone though. Non-Japanese car sales have surged. German automaker BMW saw sales boosted by 55%, while South Korean car maker Hyundai recorded a rise of 15%