Nissan to suspend car exports to China until January

October 27, 2012

THE ASAHI SHIMBUN

Nissan Motor Co. will suspend shipments of finished vehicles from Japan to China until January, sources said Oct. 26.

Nissan's decision stems from sluggish sales in China of new cars since the Japanese government's Sept. 11 decision to purchase some of the Senkaku islands in East China Sea and make them state property.

Cars exported from Japan account for only a small portion of Nissan's total sales in China. However, most Nissan vehicles exported from Japan to China are luxury cars whose profit margins are considerable.

The decision to suspend exports until next year is bound to affect Nissan's bottom line, analysts said.

Yokohama-based Nissan has already informed major auto parts makers of its decision to suspend car exports from Japan to China for three months, from November to January.

In fiscal 2011, Nissan sold 1.247 million vehicles in China, the largest among all Japanese carmakers. Of those, about 20,000 were exported from Japan. Most of them were luxury Infiniti models produced in Nissan's Tochigi factory.

Nissan has also been forced to cut back production in its factories in China as inventories are piling up due to sluggish sales. As sales are not expected to recover soon, Nissan apparently concluded it will also have to suspend its exports from Japan to China.

Other Japanese carmakers are also adjusting their production volumes in China due to an overall slump in sales. They will also likely review their exports to China.

Nissan's sales in China account for about 25 percent of the maker's total global sales. The percentage figure is the highest among all Japanese automakers.

Toyota Motor Corp. has also suspended its exports of vehicles, mainly luxury cars, from Japan to China.

(This article was written by Satoshi Kubo and Takeshi Narabe.)

THE ASAHI SHIMBUN
  • 1
submit to reddit
Nissan’s chief operating officer Toshiyuki Shiga speaks at an event in China on Sept. 8. (The Asahi Shimbun)

Nissan’s chief operating officer Toshiyuki Shiga speaks at an event in China on Sept. 8. (The Asahi Shimbun)

Toggle
  • Nissan’s chief operating officer Toshiyuki Shiga speaks at an event in China on Sept. 8. (The Asahi Shimbun)

More AJW