Japan's automakers have a made-in-China sales crisis, Total sales of Japanese auto brands in China down 32% year-on-year

[beijingwalker]

Japan's automakers have a made-in-China sales crisis, Total sales of Japanese auto brands in China down 32% year-on-year​

May 2, 20233:04 PM GMT+8

TOKYO, May 2 (Reuters) - Japan's automakers are facing a sales crisis in China, data shows, as a rapid shift to electric vehicles (EVs) has upended the world's largest auto market and led to a plunge in purchases of gasoline-powered cars.

Total sales of Japanese auto brands in China were down 32% year-on-year in the first quarter, more than double the pace of the overall market contraction, industry data analysed by Reuters showed.

While other automakers like Volkswagen AG (VOWG_p.DE) have also been caught out by the sharp shift in China, Japanese automakers stand out because of their limited showing in the fast-growing category of electric and plug-in hybrid sales.

Production and margins will come under pressure in China as automakers cut output and prices of gasoline-powered cars to keep inventories in check, analysts say, in a worrying sign of the competition Japanese automakers could increasingly face outside their home market.

"Especially Japanese automakers face a little bit more inventory of new cars," in China, Yasushi Matsui, chief financial officer at parts supplier Denso Corp (6902.T), said last week. "They are making adjustments."

Mitsubishi Motors Corp (7211.T), said last week it had suspended production of its Outlander SUV in China for three months and would take a charge of $77 million for slowing sales at its joint venture with state-owned GAC Group.

Mitsubishi, like some other Japanese automakers, does not break out China sales figures. Industry data analysed by Reuters showed its first-quarter sales in China fell by 58% from a year earlier.

In another shift, Nissan's Sylphy, a sedan that had been China's top-selling vehicle for three years, was edged out last year by the BYD Song, a plug-in hybrid made by BYD (002594.SZ), China's top automaker.

In emailed comments, Nissan said it had sold over 5 million Sylphys in China over the years, adding that an electric-drive hybrid version was eligible for incentives in Guangzhou.

The company said it was working with other cities on similar support. The e-Power electric-drive hybrid version of the sedan would be central to Nissan's brand transformation in China, it said.

'JAPAN IS THE BIGGEST LOSER'​

Toyota Motor Corp (7203.T) has said its go-slow approach to all-electric cars protects consumer choice, but the strategy is costing sales in China, analysts say.

"Japan is the biggest loser of the price war so far," said Bill Russo, founder and CEO of Automobility, a Shanghai-based consultancy.

"As EVs get more affordable, they become more attractive to the core buyers who have been resisting so far, the buyers of foreign brands. So, you can see the writing is on the wall."

Japan's share of car sales in China slumped to 18.5% in the first quarter, down from 24% in 2020, industry data from the China Association of Automobile Manufacturers analysed by Reuters showed.

Toyota and its luxury brand Lexus posted a 14.5% drop in first-quarter sales, company data showed.

"We need to increase our speed and efforts to firmly meet the customer expectations in the Chinese market," Toyota CEO Koji Sato said in an interview last month.

Nissan Motor Co Ltd (7201.T) posted a 45.8% drop in China sales and Mazda Motor Corp (7261.T) sales were down 66.5% in the first quarter. Honda Motor Co Ltd (7267.T) had a 38.2% drop, industry data showed.

Honda Chief Executive Toshihiro Mibe acknowledged the automaker lagged Chinese rivals in some software technologies.

China's automakers are "further ahead of us than we expected," Mibe told reporters at a presentation in Tokyo focused on Honda's efforts in autonomous driving and services like gaming.

Japanese automakers built their reputation on factors like durability, but the shift in China shows the draw of lower-priced electric cars and new offerings based on software, said Masatoshi Nishimoto, principal research analyst at S&P Global Mobility in Tokyo.

"Japanese automakers could face a similar struggle in the United States as in China," he said.

($1 = 136.8700 yen)

Japan's automakers have a made-in-China sales crisis

Japan's automakers are facing a sales crisis in China, data shows, as a rapid shift to electric vehicles (EVs) has upended the world's largest auto market and led to a plunge in purchases of gasoline-powered cars.

www.reuters.com

 

[PradoTLC]

personally I think Japanese car makers have lost thier marbles except for Mazda , Subaru and Honda


Lexus - completed screwed up

Toyota - a hit and miss affair

Mitsubshi, Nissan etc you have my condolences if you have these cars...

 

[Sandwalk]

Why should Chinese buy cars from a Japan that wants to destroy their country?

 

[Song Hong]

The inevitable demise of western car makers. China has the market, so China car will become very good and very low cost. Car is the most important manufacturing industry, With car becoming number one, it will bring up other industries.

The MOST serious contender of China is ---
--
--
India.


I have to admit, with a big population, sooner or later India will be number 2 car power.

 

[Zsari]

The inevitable demise of western car makers. China has the market, so China car will become very good and very low cost. Car is the most important manufacturing industry, With car becoming number one, it will bring up other industries.

The MOST serious contender of China is ---
--
--
India.


I have to admit, with a big population, sooner or later India will be number 2 car power.




View attachment 927337

It's not that easy. China have been planning for EV to overtake ICE for decades. Missing this opportunity in such a major shift, one will need to wait for decades more, and given that you placed your bet correctly next time around.

 

[Menthol]

Japanese cars used to be great cars.

But today, compared with the Chinese car, Japanese car looks very expensive for the same price.

People only buy Japanese cars because of the brand image, better model design, and quality now.

Chinese car has great features for a cheaper price, but the quality is still questionable and the model is also not as good as the Japanese car.

 

[Song Hong]

Japanese cars used to be great cars.

But today, compared with the Chinese car, Japanese car looks very expensive for the same price.

People only buy Japanese cars because of the brand image, better model design, and quality now.

Chinese car has great features for a cheaper price, but the quality is still questionable and the model is also not as good as the Japanese car.

Actually I ----- cannot blame Japan too much.

China got the market. And once you mass produce, take back monies do R&D, after 2-3 iteration, you will have better quality and lower cost.

India will be next that has high potential.

 

[Yongpeng Sun-Tastaufen]

Expected considering the bad relation between China and Japan.

 

[beijingwalker]

China’s Rapid Shift to EVs Hurting Japanese Carmakers​

May 2, 2023

Big Japanese brands are struggling to match their Chinese rivals, as buyers in the world’s biggest market transition to cheap electric vehicles​

Toyota cars are seen at the Auto Shanghai show. Sales of Japanese cars slipped to just 18% of the Chinese market in the first quarter, industry data shows. Reuters photo.

China’s rapid shift to electric vehicles (EVs) has hammered Japanese carmakers, which have seen sales of their cars, still largely powered by gasoline (petrol), plunge.

Industry data shows that sales of Japanese cars were down 32% year-on-year in the first quarter in China, more than double the overall market slump.

Other automakers like Volkswagen have also been caught out by the sharp shift in China, but Japanese automakers stand out because of their limited showing in the fast-growing electric and plug-in hybrid sales categories.

Production and margins will come under pressure in China as automakers cut output and prices of gasoline-powered cars to keep inventories in check, analysts say, in a worrying sign of the competition Japanese automakers could increasingly face outside their home market.

Mitsubishi sales down by half
Mitsubishi Motors Corp, said last week it had suspended production of its Outlander SUV in China for three months and would take a charge of $77 million for slowing sales at its joint venture with state-owned GAC Group.

Mitsubishi, like some other Japanese automakers, does not break out China sales figures. But industry data analysed by Reuters showed its first-quarter sales in China fell by 58% from a year earlier.

“Especially Japanese automakers face a little bit more inventory of new cars,” in China, Yasushi Matsui, chief financial officer at parts supplier Denso Corp, said last week. “They are making adjustments.”

In another shift, Nissan’s Sylphy, a sedan that had been China’s top-selling vehicle for three years, was edged out last year by the BYD Song, a plug-in hybrid made by BYD, China’s top automaker.

In emailed comments, Nissan said it had sold over 5 million Sylphys in China over the years, adding that an electric-drive hybrid version was eligible for incentives in Guangzhou.
The company said it was working with other cities on similar support. The e-Power electric-drive hybrid version of the sedan would be central to Nissan’s brand transformation in China, it said.

Japan car sales drop to 18.5% in Q1​

Toyota Motor Corp has said its go-slow approach to all-electric cars protects consumer choice, but analysts say the strategy is costing sales in China.

“Japan is the biggest loser of the price war so far,” said Bill Russo, founder and CEO of Automobility, a Shanghai-based consultancy.

“As EVs get more affordable, they become more attractive to the core buyers who have been resisting so far, the buyers of foreign brands. So, you can see the writing is on the wall.”

Japan’s share of car sales in China slumped to 18.5% in the first quarter, down from 24% in 2020, industry data from the China Association of Automobile Manufacturers showed.

Toyota and its luxury brand Lexus posted a 14.5% drop in first-quarter sales, company data showed.

“We need to increase our speed and efforts to firmly meet the customer expectations in the Chinese market,” Toyota CEO Koji Sato said in an interview last month.

Nissan Motor posted a 45.8% drop in China sales and Mazda Motor Corp sales were down 66.5% in the first quarter. Honda Motor had a 38.2% drop, industry data showed.

Honda CEO Toshihiro Mibe acknowledged the automaker lagged Chinese rivals in some software technologies.

China’s automakers are “further ahead of us than we expected,” Mibe told reporters at a presentation in Tokyo focused on Honda’s efforts in autonomous driving and services like gaming.

Japanese automakers built their reputation on factors like durability, but the shift in China shows the draw of lower-priced electric cars and new offerings based on software, said Masatoshi Nishimoto, principal research analyst at S&P Global Mobility in Tokyo.

“Japanese automakers could face a similar struggle in the United States as in China,” he said.

China's Rapid Shift to EVs Hurting Japanese Carmakers

Big Japanese brands are struggling to match their local rivals as Chinese buyers transition to cheap electric vehicles

www.asiafinancial.com

 

[Viet]

personally I think Japanese car makers have lost thier marbles except for Mazda , Subaru and Honda


Lexus - completed screwed up

Toyota - a hit and miss affair

Mitsubshi, Nissan etc you have my condolences if you have these cars...

Nonsense

Lexus is numero uno when coming to quality technology.
The problem with Japanese cars is the problem Japan with electric. It’s much the same problem German cars with electric propulsion.
Electric cars have less components, less moving parts, less complex, much easier to make. Some countries that never made cars can make electric cars. Vietnam, Turkey.

Japan, Germany are masters in combustion engines, in complex machines. But they are now on the losing end because people switch to cheaper electric cars.

And in times of high inflation like this today, costs of owning electric cars are thousands miles cheaper than conventional cars.

 

[beijingwalker]

Japan, Germany are masters in combustion engines, in complex machines. But they are now on the losing end because people switch to cheaper electric cars.

And in times of high inflation like this today, costs of owning electric cars are thousands miles cheaper than conventional cars.

combustion engines cars are also easy to make, they are not rocket science, besides, Electric cars are not cheap.

 

[PradoTLC]

Lexus is numero uno when coming to quality technology.

you didn't understand,

Lexus has lost the game for other reason. they have strayed away from thier core selling point to trying to ape the germans making them "sporty" and silly expensive compared to competition. Only long term owners of Lexus cars know this.

 

[Viet]

combustion engines cars are also easy to make, they are not rocket science, besides, Electric cars are not cheap.

ah you missed the news. Modern combustion engines are much of rocket engines. Look at Mercedes, Audi or BMW engines.what’s the most expensive of EVs? It’s the battery. What’s the second most expensive? It’s the computer.
The first is material. The second is the human brain. They will become cheaper by the days. Look Tesla price policy.

 

[Viet]

you didn't understand,

Lexus has lost the game for other reason. they have strayed away from thier core selling point to trying to ape the germans making them "sporty" and silly expensive compared to competition. Only long term owners of Lexus cars know this.

Ok I agree to the “sporty” part. Lexus copies BMW strategy. Cars should look sporty and sexy. Then they do over engineering the cars. That’s not wrong in principle. Among all Japanese cars I would buy Lexus. The problem is just we have war, energy crises, cost of living crises. not the right time to have something sporty and sexy.

 

[PradoTLC]

Ok I agree to the “sporty” part. Lexus copies BMW strategy. Cars should look sporty and sexy. Then they do over engineering the cars. That’s not wrong in principle. Among all Japanese cars I would buy Lexus. The problem is just we have war, energy crises, cost of living crises. not the right time to have something sporty and sexy.

the problem is Lexus is losing it's share. after certain point people don't care about reliability especially after $60K point.