Imported Japanese auto price up in China

CRIENGLISH.com - Unlike other foreign auto makers, the top Japanese manufacturers export their luxury cars to China rather than producing them locally. 

With Toyota, Honda and Nissan having shut all of their plants in Japan after the earthquake and tsunami, exports to China are suffering, at least temporarily.

Car dealers in Beijing say they have scrapped promotional activities for Japanese autos and hiked prices instead.

"The prices are now generally higher than that before the earthquake. We used to have sales promotions to offer favorable prices, but now, we increase the prices of Toyota, and a number of other imported models. "

The prices of some Toyota models are now 10,000 yuan or about 1,500 US dollars higher.

According to vehicles industry research agency, HIS Automotive Insight, Japanese carmakers are producing at least 338,000 units less than they were before the earthquake.

Despite the announcement by some automakers that their inventory is enough to sustain sales for several months, car dealers in China are more worried over the indefinite status of future supply.

However, some car dealers are taking this opportunity to make profit. Guo Yong is the commerce manager of Beijing's Yayuncun Auto Market.

"Some car dealers are hiking price to offset their loss in sales, so that to increase the profit."

Meanwhile, a mechanical parts shortage has also knocked production down at local manufacturing plants.

Media reports suggest that Toyota's Chinese plants will reduce production by 20% to 30% due to the mechanical parts shortage.

But Toyota and Honda said their car ventures in southern China have enough parts inventory to sustain normal production until the middle of this month.

Guo Yong says a sharp price rise is likely if the production can not resume in time.

"If production can not be resumed in one or two months, joint ventures in China may encounter problems and that may create a shortage of supply."

Nissan has announced to resume normal operations at all its Japanese plants by mid April and Honda says it's resuming shipment of component parts for use in automobile production in regions outside Japan from Monday.