Japanese media: Japanese cars are struggling in China and are increasing their efforts in India
Japanese cars once thrived in the Chinese market, but with the advent of the new energy vehicle era, their status has been constantly shaken by Chinese car companies. Recently, a Japanese media article pointed out that Japanese cars are struggling in China and are increasing their efforts in the Indian market.
It is predicted that by 2050, India's population will increase from 1.4 billion to more than 1.6 billion. S&P Global expects that India's new car sales will increase by 45% to 6.84 million by 2031 compared with 2023. This is equivalent to 1.5 times Japan's new car sales in 2023. Japanese media said that Japanese car sales in the Chinese market are sluggish. As the revenue base after North America, India is becoming increasingly important to Japanese automakers.
At present, many Japanese automakers have taken action. For example, Suzuki will increase the number of auto dealerships in India by 70% to about 6,800 by 2030. Toyota is also stepping up its business in India. In July this year, Toyota reached a basic agreement with the local state government to set up the fourth factory. The investment amount may reach 200 billion rupees (about 16.77 billion yuan).
The report pointed out that the reason why Japanese automakers attach importance to the Indian market is not only because of the growth potential of the Indian market, but also because of the fierce competition with the rising Chinese automakers. At present, Japanese automakers are "struggling" in China, the world's largest auto market. Honda has reduced its fuel vehicle production capacity in China by 30%, and Nissan has also reduced its overall production capacity by about 10%. Suzuki withdrew from the Chinese market in 2018. "Due to the rise of emerging Chinese manufacturers such as BYD, Japanese car sales in China are sluggish."
The Japanese media concluded at the end of the article that India's production costs are lower than Japan, and it is closer to the Middle East, Africa and other regions. If Japanese companies can avoid competing with Chinese companies, increase sales and further reduce costs, it is expected to make India a highly competitive export base for the global southern market.