Japanese automakers dominant in China

February 2, 2007
By Ken Worsley

We’ve reported on the continuing decline in Japan’s domestic auto sales, but one place where Japan’s automakers are turning a pretty penny is China. Since 2001, Japanese automakers have increased their market share in China from about 15% to 25.7% in 2006. Last year, Japan’s automobile manufacturers moved 983,000 units in China.

This has been mainly at the expense of European automakers, whose market share has dipped from 53.8% five years ago to 24.4% last year. Why the shift in fortunes? According to a report released by the China Automotive Technology and Research Center:

The booming sales of Japanese brands are also attributed to their positive image associated with energy savings and high performance. Japanese brands have gained market share by tuning in to the needs and aesthetic preferences of Chinese buyers.

3.8 million sedans were sold in China last year; that number is projected to rise considerable in the next decade, should China be able to maintain anything resembling its current pace of economic growth.

Filed Under Automotive, China