Japanese car sales 'back on track' as customers return (3)

Analysts said a greater threat to Japanese automakers lies in their shortsighted approach toward the Chinese market.

The sudden decline in demand for Japanese vehicles has proved to be an unexpected boon to other foreign brands, said Lin Huaibin, auto analyst with the information company IHS Automotive.

About half of the potential customers who had once shown an interest in Japanese cars have since decided to buy German, South Korean or US vehicles, he said. As a result, BMW's China sales increased by 55 percent in September, Audi's by 20 percent and Hyundai Motor Co's by 15 percent.

Japanese automakers have not moved aggressively to expand in the world's largest auto market.

"With intensified competition, Japanese manufacturers are lagging behind Volkswagen and General Motors in the introduction of new products, and they haven't developed many exciting technological breakthroughs," Lin said.

For one, Japanese automakers have not done much to make sure their designs incorporate Chinese elements — a practice commonly found in GM's various car models.

Japanese automakers are taking steps, though, to change their ways. Toyota recently said it will introduce two brands that will be sold exclusively in China next year, and Shen said Nissan also plans to sell models tailored to the Chinese market.

Lin, though, remains pessimistic about the company's prospects.

"A number of Japanese cars have been recalled in recent years, and that has clouded their reputation for quality."

Contact the writer at hewei@chinadaily.com.cn

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