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Friday, 20-May-2011 11:33 Email | Share | | Bookmark
Read Facts about Toyota Recording Rise in Exports

Recently Toyota Motor Corp said that production of cars all over the world had a set back from the month of December as a result of smashing downfall in the output in Japan after the expiration of subsidies for greener cars.


Honda Motor Co. and Nissan Motor Co. in the meantime stretched and extended their production to meet the never ending demand overseas. Toyota stated that its production had a steep fall of 6.5% in December of 594,882 cars as compared to that of previous year.

This reflects a sudden two-digit fall in its output from its local factories and as a result 33% sales tumbled down. The government’s policy of canceling the subsidy for Japanese Energy-Efficient-Greener cars has hampered its sales all over industries.<

As per statements of Japanese car exporters, Toyota Company records a 6.2% increase in its exports due to its larger amount of sales in Latin America, Europe and Asia. Also Toyota’s production in other countries had a steep increase of 1%-351,053 Japanese cars. This was an extraordinary high record for the month of December. In the fiscal year 2010, its world wide production expanded leaps and bounds by 20% i.e. 7.623 million units.

Nissan Company manufactured 351,334 vehicles in December and this was a 20% record breaking hike for that month as per the company records. Extremely high demand in March for a new compact NV200 van drove China’s production up by 21% per year, but domestic sales fell by 20% due to offsetting slight fall of 0.1% in USA. However, Japanese car export rose to 34% i.e. 76,490 units. Nissan Company had a record production of 4.053 million vehicles in the last year-2010 and this was an up scale production by 37%.

Another Japanese car manufacturer, Honda produced a total of 287,740 vehicles all over the world in December with a 0.3% increase from the preceding year. However, exports were doubled to 27,381 vehicles while the local sales drop by 35%. Honda had its first increase in 2010 of Japanese Car export, first of its kind in the last two years. It had global production of 21%-3.643 million cars in a single year. Its production records in Asia and China were astoundingly high.

Mazda Motor Corp.'s world wide production also had a marked increase of 16% that is 115,810 vehicles in December. Its total production in the financial year 2010 targeted to 33% - 1.308 million units.

Mitsubishi Motors Corp. saw a downpour/drop in its production of 2.1% that is 94,201 vehicles as compared to previous years.


Friday, 20-May-2011 11:32 Email | Share | | Bookmark
Why do JAPANESE AUTO MAKERS STRUGGLE IN CHINA

Though Japanese car manufacturers are planning to introduce variety of models in China market and go offensive, the competition here is tough as major automakers around the world also plan to do the same. The auto sales have been found to be touching to 18 million in year 2010 in China. This figure shows a 35 percent growth in sales than for the year 2009. Again a tremendous increase and explosive growth in sales is expected in future.

PROBLEMS OF JAPANESE CAR MARKET IN CHINA
Japanese car producers not only have failed to expand their sales market, a share has been noticed to get dwindled in China from 25.7 percent in the year 2008 to approximately 20 percent in 2010. The Japanese carmakers have number of disadvantages, the two major one are:
• Less models are available for Chinese market - Japanese offer a very little choice of car models to Chinese buyers, the example being forwarded by experts that Honda models available only with having engine capacity of 1600cc or less
• Higher prices than what their rivals are offering – Average Chinese buyer is willing to spend around 50,000 Yuan for his or her car. The Nissan sells its compact model March at about 80,000 Yuan as against USA’s General Motors Co. selling its most popular model just for 30,000 to 50,000 Yuan.

As per the analysis report of Chinese Association of Automobile Manufactures, the cars having engine capacity not more than 1600cc and having a price tag of approximately 50,000 Yuan are most favorable for Chinese car buyers. Also as per government policy in China, a rural resident is entitled to subsidy for a compact car purchase and for those auto vehicles having the engine capacity of 1600cc or less.

Though the Japanese cars are supposed to be of high quality, they lack sense of luxury and are not considered to be fun or cool to drive. Some of Chinese car users think of them as less fashionable where as some others consider Japanese cars as something special but prices are unreliable and go beyond consumers buying capacity.

SOLUTION FOR JAPANESE CAR MARKET IN CHINA
As per Japanese Automobile Manufacturers Association Inc. the higher prices of Japanese cars are attributed to better performance than that of rivals and it creates bitter market struggle in China.

Japanese carmakers are going to address the problem and planning to introduce new models in the market to suit the test of local consumers. In December last, Guangqi Honda Automobile Co. has introduced a compact model known as Li Niam S1. This is the first new model supposed to hit the market in spring. Mr. Seiji Kuraishi, who is a chief operating officer of regional operation in China, has recently declared that Honda wants to be on offensive side by launching a car suitable for younger generation and for those who are first time buyers.

Out of certain exporters, Nexusscars is a Japanese Car exporter and online Used car brokers who supply cheap Cars from Japan Auctions. This also helps in increasing the exports of Japanese Used Cars.

However, no matter what efforts are put in, the observers of the market have the opinion that Japanese car suppliers will face uphill task to reclaim the lost market in China against their rivals as General Motors of USA and Peugeot of France have announced their plan to manufacture original brands in China.


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