Toyota, Nissan and Honda Increase Production in China image

Toyota, Nissan and Honda increased production in China for the first time since the territorial dispute sparked in September.

Although Japan’s top three automakers have increased production, they are still cautious about how sustainable this rebound is. Toyota announced that production in China increased 7.4% to 57,200 vehicles in January compared with the same period in 2012, while Nissan reported an increase of 3.88% and Honda 3.75%.

These results were the only positive ones since mid-September when the territorial disputes between China and Japan sparked a consumer backlash that affected demand for Japanese brands. This year Japan’s auto industry might finally get back on the track after years of misfortunes, including the boycotts in China, the yen’s rise in the past few years and the natural disasters from 2011.

In December, Japanese automakers’ sales in China slightly increased as the territorial dispute between the two territories waned and the Japanese automakers offered big incentives to attract customers. Nissan, which is the biggest Japanese automaker in China, reported a decline of 24% in December from 29.8% in November and 41% in October. Honda’s sales dropped 19.2% in December, 15.9% in November and 26.4% in October.