Rising tensions have caused Japanese automakers to cut China output as sales continue to decline.
Japanese automakers are planning additional production cuts after rising tensions are pushing down sales at Mazda, Suzuki, Nissan and Toyota. Nissan and Toyota suspended output at plants across until the the 8th of October – the end of China's national celebrations – as did fellow national producers Mazda and Suzuki.
With balance sheets still hungover from natural disasters in Japan and Thailand last year, Japanese carmakers may see an even greater financial impact from the protests, according to China's Passanger Car Association. Mazda has seen sales drop by 35% in September from a year earlier, according to recently published data. The figures may be a precursor to yet more worrying data from Japanese manufacturers.
For the first time since 2005, Japanese autos will lose their lead over German marques as luxury sales continue to thrive during the crisis. BMW's car sales surged 59% in September, with Audi and Mercedes-Benz also reporting strong, double-digit sales increases. BMW increased deliveries to 29,631, thanks in part to sales of its new 3-series sedan and X1 compact SUV. Deliveries for Audi, China's top seller in the luxury sector, rose 20% to 35,512, followed by Mercedes' 10% increase to 16,806 deliveries in the same period.
Strong sales from the three luxury carmakers, who together hold a 75% market share in the luxury car sales, may allay some of the fears of a slowdown in the nation's booming marketplace.
South Korean automakers Hyundai Motor Co and Kia Motors Corp are thought to be soaking up sales from Japan, as both are forecast to exceed their yearly sales targets. Combined deliveries rose to 127,827 units last month, up 9.5% on the record set in 2011.
Although China is Japan's largest trading partner, exports to Japan make up less than 10% of China's total. The complicated situation could have worrying implications for Japan's economy, which has been struggling sluggish growth for the last decade.