Wednesday 24 July 2013

Toyota, facing lingering anti-Japan tensions, mulls shift in China strategy

BEIJING (Reuters) -- Toyota and its dealers are quietly maneuvering to allay risks from periodic eruptions of anti-Japan sentiment in China, even as recent sales data suggest a slow but steady recovery for Japanese automakers since the latest flare-up last year.

China sales for Toyota Motor Corp. and other Japanese car makers tumbled after a territorial dispute between Beijing and Tokyo sparked an outbreak of anti-Japanese protests in September last year.

Trade and diplomatic ties between Asia's two biggest economies are prone to sporadic disruptions, a legacy of the lingering bitterness from Japan's wartime occupation of large parts of northeastern China.

As a result, some executives at Toyota's China unit are considering the merit of focusing its sales effort, at least in the shorter term, on southern China, where anti-Japanese sentiment is historically weaker.

In the south, sales of Japanese cars have all but recovered to pre-September levels "as if nothing happened", a senior Toyota executive in Beijing said.

"Our feeling is why spend money to overcome the bias against Japanese products in northern China?" the executive said.

"We could get more bang out of that same money by focusing on southern China where we already have a (relatively) good will towards Toyota and Lexus."

Asked about such a move, a Toyota spokesman said it was focusing on the quality of it products.

"The bottom line: the best thing for us as an auto maker to do in China, and in any market for that matter, is to keep making efforts to come up as quickly as possible with the kind of cars consumers deem desirable and want to embrace," Toyota's Beijing-based spokesman, Takanori Yokoi, said

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