Why Toyota can't find the success in China, the world’s biggest auto market

Why Toyota can't find the success in China, the world’s biggest auto market
Toyota's US sales fell by 4% in October as the overall market increased by 13%. And in China, it posted a 6% decrease to 61,000 vehicles. This is certainly a cause for worry as it marks Toyota's first year-on-year drop in China since April 2009. Toyota needs to sell a lot more vehicles to be able to catch up with the market leaders in China, namely: General Motors, Volkswagen and Hyundai.

Toyota’s challenges include the recall crisis and the political tensions between Beijing and Tokyo. China's total market sales in October have not been released yet but it seems unlikely to have dropped.
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Joe_LimonJoe_Limon - 11/10/2010 12:22:34 PM
+9 Boost
+1 I doubt it's a first time buyer issue. China has never liked Japan.


g2okg2ok - 11/10/2010 12:23:30 PM
+4 Boost
Chinese don't like Japanese. Seems also Toyota is too pricey against local companies in markets like India, so they really need to be innovative in design and marketing.


AudiTTAudiTT - 11/10/2010 1:28:58 PM
0 Boost
Toyota is not "too pricey" for Chinese buyers.


AudiTTAudiTT - 11/10/2010 1:24:36 PM
-1 Boost
If you know what those Japanese car makers have done in Chinese market, you won't be surpurised about this. True the history between China and Japan is never resolved, and it did affect the sales(a little bit). Keep in mind Chinese people like Sony, Canon, Nikon, Panasonic, etc.
The problem is from Japanese auto makers, not from Chinese.
Before 1980s, Toyota, Nissan sold some cars to Chinese market and became major foreign cars in China, other than Mercedes.
In 1980s, Chinese economy's booming created a huge demend on high-end cars for Taxi, government, etc. Toyota, Nissan had sold millions Used Cars to China, which let them made a lot of money from those"junk". However, those "junk" cars were good used japanese cars. Chinese people relied on this for a decade, until Chinese government wanted to import their technologies and setup joint ventures in China. That was when Chinese go tpissed off, the japanese just wanted to sell their used cars and some new cars - no "Joint". That was mistake made by japanese automakers at first place, not like the electronic makers.
That's why you can see VW occupaies large market in China( used to be 90% of passenger car market). The American was in that moment, similar to japanese cpunter parts, Chryster made a mistake, too. While Chinese governemt was refused by Japanese car makers, chrysler offered good deal on future high-end car used for government. But the contract was signed piece by piece. They signed on engine first, and stuck on the rest portion of the car, because Chrysler raised the price. Still hard to say who was stupid. At the moment, there was another "wolf" , named VW, came and say" I offer a good deal and work with that " monster" Chrysler engine. That's why the first version of Chinese Audi 100 was much longer that they are in Europe, because it was streched to hold "Chrysle Engine".
Anyway, VW, Audi occupied most of the car market very soon. (That's why chinese government official cars are Audi, ever), After another decade, most of car makers around the world have setup some type of joint verntures in China. So the Japnese car makers wanted to get into Chinese market(it's mid 90s). The Chinese central government said:" SORRY, WE HAD ENOUGH GOOD CAR COMPANIES". Their request was on hold for many years. Evern after they were approved, there was not much space left and the quilities of some Japanese cars made in China weren't that good. And there too many options over there(even more options than American buyers). Pretty much all European, American, Japanese, Korean and 100 plus Chinese car makers offer hundreds of models in China.
The political conflicts between two counties make the cars sales worse.
BTY, the Ford, GM had learned all of these lessons before they dived into Chiese market before 2000.


theoptimisticpessimisttheoptimisticpessimist - 11/10/2010 5:04:22 PM
+6 Boost
Generations upon generations of hatred is not going to be overcome in a few decades. How well do Japanese cars sell in Korea.


uaw_laxuaw_lax - 11/10/2010 8:05:02 PM
-3 Boost
Americans can be brainwashed but not the Chinese.


800over800over - 11/11/2010 1:45:53 PM
+1 Boost
Are you talking about the union brainwahers you work for?


uaw_laxuaw_lax - 11/11/2010 10:04:16 PM
+1 Boost
No I'm talking about the staggering number of Japanese recalls in the last 3 years.


theman440theman440 - 11/10/2010 11:05:48 PM
+1 Boost
Nationalism is a good thing.


uaw_laxuaw_lax - 11/11/2010 10:02:16 PM
+1 Boost
A very good thing.


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