The violent attacks in China against Japanese automakers have severely affected sales which dropped 1.8% in September to 1.62 million.
Auto sales in China have decreased form 15.8% in June to 3.7% in August amid increased tensions between the two nations. The China Association of Automobile Manufacturers said that the anti-Japan manifestations in China have kept customers away from the Japanese showrooms, and therefore from buying cars.
Toyota reported a decrease of 48.9% in September, Honda’s sales dropped 40.5%, besides the stock prices that also fell over the past month. Overseas automakers such as GM and Ford, reported record sales in September, with GM up 1.7% to 244,266 units and Ford up 35% to 59,570 vehicles sold in China. Korean automaker Hyundai and Kia also reported increased sales with 9.5% to a combined 127,827 vehicles, and Audi’s sales jumped 20%.
“If China and Japan are to swiftly resolve the conflicts diplomatically, the likely economic impact would be minimal. However, with no immediate signs that such conflict could be so resolved, it would hardly be surprising that sour bilateral relations could translate into real economic damage to both Chinese and Japanese economies,” said Hong Kong’s Trade Development Council.