Thursday,
July 6, 2000
Japan Automakers To Beef Up Sales Networks In China
TOKYO (Nikkei)--Japanese automakers plan to set up and
expand sales networks in China in hopes that its expected
entry into the World Trade Organization will result in lower
tariffs and an end to restrictions on vehicle imports.
Honda Motor Co. plans to boost the number of outlets
dealing exclusively in its passenger models from 40 to 120 by
next year. Many dealerships in China offer models from several
different automakers, but Honda cultivates brand recognition
through outlets specializing in its own products.
The automaker will expand its sales networks in Shanghai,
Beijing, Guangzhou and other metropolitan areas. It is
negotiating with local investors, many of whom are eager to
launch new stores thanks to brisk Chinese sales of the Accord,
which has been made in Guangzhou since 1998.
Honda plans to boost local output from the current 30,000
units a year to 50,000 units as early as 2002 by upgrading
parts of its assembly line. It will also consider exporting
Japanese-made cars to China if the nation's WTO entry leads to
lower tariffs.
Toyota Motor Corp. plans to begin joint production of
30,000 1.3-liter sedans a year in Tianjin in 2002 after
obtaining Chinese government approval in May. Its sales
network will consist of 60 local firms that now repair
vehicles imported from Japan.
Suzuki Motor Corp. is considering expanding its sales
network to about 300 dealers. The automaker, which started
manufacturing the Alto locally in 1995, this month began local
production of a second model, the Cultus.
Mitsubishi Motors Corp. is planning local production and
will launch sales companies in Tianjin and Dalian sometime
this year, joining existing sales firms in Shanghai and
Guangzhou.
(The Nihon Keizai Shimbun Thursday morning edition)
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