After years of slowing sales, Japanese automakers are gaining ground in China.
Sunsets on a Honda in Shanghai Image: Zhao |
Sales of Japanese brand vehicles increased by 20% year-on-year in China as increased demand before the Lunar New Year holiday caused a boost in new car sales of 9.3% to 2.23m units.
While sales increased, Japanese brands' overall market share dropped slightly to 13.4% from 17.4% in 2014.
Toyota group saw a 32% increase in January sales up to 125,000 units, partially due to its wide range of cars that meet the small vehicle incentives launched by the Chinese government last year.
On average, Japanese car brands enjoyed a 17% growth spike year on year in January, compared to a nationwide average of 11.6%, according to data from the CPCA.
In 2012, a territorial dispute lead to anti-Japanese sentiment which had an adverse affect on car sales in the emerging market, causing brands like Toyota and Honda to lose market share to German rivals.
A recent survey of more than 40,000 consumers in China by research firm Bernstein Research, revealed that 51% of respondents wouldn't purchase a Japanese car, with over half of those giving the reason as 'anti-Japan feelings'.
In spite of this, Japanese and Korean brands still lead the way in the electric vehicle battery market. Electronics giant Panasonic enjoys a 56% share of the North American market for EV batteries, while Japanese brands together account for around 76% of the market.
Total NEV sales tripled in China last year to 331,100 units, according to data from the China Association of Automobile Manufacturers.