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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