Japan-brand sales plummet
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E-mail China Daily, October 22, 2012
Although SUV and luxury car sales continued to increase in September, the growth rate was significantly lower than the previous months.
But even amid the sluggish market, most non-Japanese automakers benefited from the decline of Japanese brands.
Great Wall's sales surged by 77 percent in September on the strength of its SUV models.
Geely and JAC also achieved remarkable sales, increasing by 25 percent and 22 percent respectively.
German and US automakers - Volkswagen, BMW and Daimler, Ford and GM - all had impressive surges in September, especially Ford, which hit a record high.
Although the immediate damage is being felt by the Japanese, worsening relations between China and Japan is likely to drive away Japanese investment, the third-largest source of foreign direct investment in China.
Of greater concern in the short term is the heavy reliance of the Chinese auto sector on Japanese auto components.
Japanese companies supplied 58 percent of imported auto transmissions in the first eight months of this year. Further diplomatic tensions could disrupt the supply chain.
Taking the factors into account, our forecast for growth in 2012 passenger vehicle sales has now been revised down from 9.4 percent to 8.2 percent.
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