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Japanese cars return with production capacity’s recovery
Published on: 2011-07-08
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Influenced by the earthquake in March, there is currently capacity constraint in Japanese car production, with tight supply of automobile accessories. It directly caused price rises and order fulfillment difficulties. The Chinese market share of Japanese producers has been gradually replaced by German, American & Korean cars. In recent months, with the production capacity recovery of Japanese cars, represented by Toyota, Honda, and Nissan, most of these brands have started to distribute cars normally to auto dealers.

From June, present vehicle supplies have evidently increased and there appears to be more promotions to lure buyers.  Mr. Liu, a sales consultant at a FAW Toyota 4S store said, “The sales quantity in April and May was about 40 units, while it amounted to 70 in June.”  Benefits from the production capacity recovery include increased promotions. It is reported that the price of all standard Toyotas was reduced as factories provided additional cars.  At present, a 5,000 CNY cash benefit is provided for RAV4 purchases and the benefit for Corolla purchases amounts to 10,000 CNY. Moreover, customers taking a test-drive have a chance to receive a gift valued at 100 CNY.  Special clients can receive vehicle insurance valued at 950 CNY.

Many Japanese brands such as Guangzhou Toyota, Dongfeng Honda, and Dongfeng Nissan have started actively marketing in an attempt to salvage lost market share. “The price of the Fit has been lowered by 12,000 CNY,18,000 CNY for the Fan,25,000 CNY for the Odyssey, and 30,000 CNY for the Accord.” A sales consultant of Dongfeng Honda says that there are not enough cars in stock, while making 50 calls every day in order to save the time of quite a lot of clients who are waiting for cars.
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