Japan automakers' woes drag into 2013
Japanese automakers' China sales in the first three months of the year have yet to recover fully from last year's slump, and foreign rivals are capitalizing in a market expected to advance 7 percent in 2013.
On Wednesday, Mazda Motor Corp. and its partners reported their China sales dropped 22 percent in the three months through March compared with the same period a year ago.
The figures suggest Japanese car companies are likely to struggle in China for some time to come, and early optimism of a fast recovery -- Mazda said in November it hoped to be back to normal by the end of March -- was premature.
Earlier this week, Nissan Motor Co. said its sales were down 15 percent year-on-year in the three months through March, while Toyota Motor Corp.'s deliveries fell 13 percent and Honda Motor Co.'s volume decreased 5 percent.
"While the year-on-year percentage drop of China sales by Japanese automakers is shrinking, sales are still down by around 10 percent, which shows that they are still struggling in the overall market. We think this will continue this year and into the next year and the following year," said Masatoshi Nishimoto, an analyst at IHS Automotive in Tokyo.
Though the figures have improved since last September, when sales plunged by around 50 percent after violent anti-Japan protests broke out in China in response to a diplomatic spat between the countries, Japanese firms continue to struggle against rivals including Volkswagen AG and General Motors.
Japanese automakers' collective share of China's passenger vehicle market fell to 13 percent at the end of February from 16 percent at the end of last year, according to data from the China Association of Automobile Manufacturers.
German brands in particular have taken advantage and claimed 19 percent of the market at the end of February, up from 18 percent. Data for March was not yet available.
GM's China sales in the first three months rose 10 percent from the same period last year, it said on Wednesday.
Honda resilience
Of Japan's major brands, Honda is proving the most resilient this year, partly as a result of the redesigned CR-V crossover it launched in 2012.
In the two months through February, overall SUV sales surged 50 percent year-on-year, more than doubling the gain of sedan sales, according to CAAM data.
"The new CR-V has been a big help for Honda when many consumers are turning to German, Korean and American brands," said John Zeng, Asia Pacific director of consultancy LMC Automotive.
In the three months to March, CR-V's China sales rose 7 percent to 36,657 vehicles, accounting for a quarter of Honda's overall sales there.
Nissan relies more heavily on China than do its compatriots. It and its partners sold 1.18 million vehicles there in 2012, accounting for 24 percent of its global sales.
Japan's second biggest automaker by global sales has pushed back by one year to 2017 its plan to win 10 percent of the Chinese market, Chief Executive Carlos Ghosn told Reuters last week. It currently has around 7 percent of that market.
The January-March sales results will be reflected in the first quarter of the Japanese companies' financial year that started on April 1, because the business year for their joint ventures with Chinese partners starts in January.
They are expected to announce fourth quarter earnings in late April and early May.
The figures suggest Japanese car companies are likely to struggle in China for some time to come, and early optimism of a fast recovery -- Mazda said in November it hoped to be back to normal by the end of March -- was premature.
Earlier this week, Nissan Motor Co. said its sales were down 15 percent year-on-year in the three months through March, while Toyota Motor Corp.'s deliveries fell 13 percent and Honda Motor Co.'s volume decreased 5 percent.
"While the year-on-year percentage drop of China sales by Japanese automakers is shrinking, sales are still down by around 10 percent, which shows that they are still struggling in the overall market. We think this will continue this year and into the next year and the following year," said Masatoshi Nishimoto, an analyst at IHS Automotive in Tokyo.
Though the figures have improved since last September, when sales plunged by around 50 percent after violent anti-Japan protests broke out in China in response to a diplomatic spat between the countries, Japanese firms continue to struggle against rivals including Volkswagen AG and General Motors.
Japanese automakers' collective share of China's passenger vehicle market fell to 13 percent at the end of February from 16 percent at the end of last year, according to data from the China Association of Automobile Manufacturers.
German brands in particular have taken advantage and claimed 19 percent of the market at the end of February, up from 18 percent. Data for March was not yet available.
GM's China sales in the first three months rose 10 percent from the same period last year, it said on Wednesday.
Honda resilience
Of Japan's major brands, Honda is proving the most resilient this year, partly as a result of the redesigned CR-V crossover it launched in 2012.
In the two months through February, overall SUV sales surged 50 percent year-on-year, more than doubling the gain of sedan sales, according to CAAM data.
"The new CR-V has been a big help for Honda when many consumers are turning to German, Korean and American brands," said John Zeng, Asia Pacific director of consultancy LMC Automotive.
In the three months to March, CR-V's China sales rose 7 percent to 36,657 vehicles, accounting for a quarter of Honda's overall sales there.
Nissan relies more heavily on China than do its compatriots. It and its partners sold 1.18 million vehicles there in 2012, accounting for 24 percent of its global sales.
Japan's second biggest automaker by global sales has pushed back by one year to 2017 its plan to win 10 percent of the Chinese market, Chief Executive Carlos Ghosn told Reuters last week. It currently has around 7 percent of that market.
The January-March sales results will be reflected in the first quarter of the Japanese companies' financial year that started on April 1, because the business year for their joint ventures with Chinese partners starts in January.
They are expected to announce fourth quarter earnings in late April and early May.
