Toyota says it expects sales in China to recover soon, after it was hardly hit by the territorial disputes between Japan and China.
According to Feng Xingya, executive vice president of Toyota’s venture, retail sales at GAC Toyota Motor, the automaker’s Chinese JV, have recovered to the levels before the violent protests in mid-September. Over the past two months Toyota reduced produced to ease pressure on the Chinese dealerships and stockpile levels have dropped ‘dramatically.’
“The faster the sales recover the better,” said Kunihiko Ogura, Toyota managing officer and president of its joint venture with Guangzhou Automobile Group Co. “Our sales are recovering steadily and will return to normal in the not-too-distant future.”
Nissan, which also saw its sales severely affected by the protests, said that this month dealership traffic and orders in China have rebounded. Toyota and Nissan will join GM and VW at the Guangzhou auto show this week, the first major marketing event after the violent riot in mid-September. Toyota also plans a new joint venture in China and expand in smaller cities by setting up satellite dealerships.
“The general expectation in the market is for the situation to gradually normalize in the January-to-March period next year,” said Satoru Takada, a Tokyo-based auto analyst at Toward the Infinite World Inc.