Patriotism or cold calculation? It doesn’t matter. China is no longer the world’s factory, but also an important customer for famous manufacturers.
The automotive industry is a good example of this. At this point, it should be noted that the revolution in the automobile industry turned out to be more beneficial for Chinese companies. Japanese products face the consequences.
It’s no secret that cars from this great communist state were the object of ridicule from Europeans and Americans. Finally the Chinese decided that instead of forging, it is better to buy or cooperate and use the technology. This was the case with Volvo and Renault.
The aforementioned revolution in favor of electric vehicles made that task much easier. Large deposits of lithium needed to create batteries are located in South America and Asia. If we add this access to the latest technologies and cooperation with popular European issues, it will be unattractive for some brands.
Japanese products are losing and will continue to lose
Companies from the Land of the Rising Sun are already facing the consequences. The Chinese are not interested in paying more, which is why they are increasingly choosing original models with confidence. Electrical technology does not make much difference in the case of power, so a scientific approach is justified here.
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The results appear in the numbers. In the first quarter of 2023, Japanese brands sold 32 percent fewer cars in China than in the same period last year. This is a big blow to the local industry. Their share of the Chinese market dropped to 18 percent. From 2020, the typical loss is 2 percent.
Mazda was hit hardest, with sales in China falling by 66.5 percent. Nissan rose 45.8 percent and Honda 38.2 percent. In the case of Toyota and Lexus, the headache mentioned is 14.5 percent.
The prospect is not bright. Japanese manufacturers are losing not only due to increased interest in domestic products, but also bold attempts to win with European competitors. Today, no one pretends that China does not matter. Some cars are specially designed for this customer. Premium class is no exception here.