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Nissan

Nissan was founded just before World War I, and is one of the largest carmakers in the world. In 1999, it entered an alliance with French carmaker Renault, which owns 43.4 per cent of Nissan, which owns 15 per cent of Renault. Its models include the high-performance GTR.

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Nissan expects to lead industry in Chinese sales

Japan's second-largest carmaker forecasts rebound from year hit hard by territorial row

PUBLISHED : Friday, 06 December, 2013, 5:09am
UPDATED : Friday, 06 December, 2013, 6:59am
 

Nissan Motor says its growth in China next year will outpace industrywide sales there for the first time in three years as consumers in the world's largest car market return to Japanese brands.

"Next year, we should see our sales increasing, probably a little bit more than the industry," Joseph Peter, the chief financial officer of Japan's second-largest carmaker, said yesterday.

"Fortunately to date, we haven't seen the recurrence of the uproar in demonstrations and the violence targeting Japanese companies that happened in September of last year."

Nissan was among the hardest-hit Japanese carmakers last year, when a territorial dispute between Asia's two biggest economies spurred boycotts against Japanese products.

While the diplomatic row resurfaced last month after Beijing created an air-defence identification zone in the East China Sea, Peter's comments add to signs that Japanese companies are escaping the type of consumer backlash they faced last year, which saw Nissan deliveries fall 5.3 per cent.

Peter said last year's demonstrations set back Nissan's mid-term targets in China by 11/2 to two years.

Nissan, which wants to capture 10 per cent of the Chinese market, said last month it expected deliveries there to increase 7.5 per cent to 1.27 million units this year.

Meanwhile, Nissan's partner Renault, France's second-biggest carmaker, said yesterday the National Development and Reform Commission had given final approval for the building of its first factory in China under a joint venture with Dongfeng Motor.

The companies would invest 7.76 billion yuan (HK$9.87 billion) and produce 150,000 multi-purpose vehicles and engines a year, Dongfeng said in a statement.

Separately, China's state television have accused foreign carmakers of charging customers more for repair costs than in other markets, singling out Audi, Subaru and Jaguar Land Rover in the latest of a series of programmes targeting foreign companies.

China Central Television also said on Wednesday that many foreign carmakers' dealers were reluctant to repair parts, often insisting on more expensive replacements.

The programme said it was based on interviews with customers and workers at service workshops designated by foreign carmakers.

"By setting ridiculously high prices, China has become the 'treasure bowl' for global carmakers," the report said, adding that foreign carmakers were abusing their monopoly of sales channels.

It noted, however, that import and other duties were partly responsible for pushing up prices.

Responding to the television report, Jaguar Land Rover, owned by India's Tata Motors, said its pricing was in line with Chinese regulations.

Bloomberg, Reuters

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