Nissan Motor Corporation, which is the biggest Japanese automaker in terms of car sales in China, stated that it is paying close attention to the equities rout there since a recent plunge in the stocks’ value there might affect the consumers’ confidence.
Despite government measures such as the suspension of initial public offering and the restrictions on falling share prices, the Chinese stocks registered a $3.9 trillion loss in market value in less than a month. With passenger vehicles sales going down for the first time in more than two years, automakers are starting to feel the bad consequences following that. India has also registered its first decline in passenger car sales in the past eight months. Nissan’s chief competitive officer, Hiroto Saikawa, said that if the rout is too abrupt, it will leave a negative impression on the economy and that the auto brand is paying close attention to how it develops, adding that the stock-market unrest is slowing the demand for luxury and premium cars.
The China Passenger Car Association announced on Wednesday that the retail deliveries of vehicles, multipurpose cars and sport utility autos went down 3.2% in June compared to 2014, reaching 1.43 million units. Honda Motor Co.’s president Takhiro Hachigo stated that China’s car market can still grow due to the number of first-time buyers and added that Honda plans to sell more cars in 2015 in the country than the previous year. Nissan announced that it will increase its production of the Rogue crossover model for export at the Kyushu Plant in Japan in order to increase its domestic output to 1 million vehicles this year.
By Gabriela Florea