China has become a major cash cow for the three major Japanese automakers, with the emerging nation to account for more than 40% of profits at Honda Motor Co. and Nissan Motor Co. in the year ending in March, the Nikkei reported in its Tuesday morning edition.
China is emerging as the world's largest auto market in 2009 with new-vehicle sales seen reaching 13.5 million units there, exceeding those in the U.S. The Japanese carmakers are rushing to increase output capacity and expand sales networks.
Honda will log at least Y65 billion in equity-method profits from Chinese subsidiaries - 42% of its group net profit. Its mainline Accord lineups and a new model in the City family are selling well in eastern regions. Honda is on track to sell nearly 600,000 vehicles there in 2009, up 27% on the year.
Nissan is the most successful among the trio, pushing up sales 36% to 740,000 autos in 2009, 30,000 units above its target. Its fiscal 2009 operating profit in China will likely reach Y50-60 billion - nearly 50% of its group operating profit.
China is "the most important region for our sustainable growth," says Chief Operating Officer Toshiyuki Shiga. Nissan intends to sell 850,000 units there in 2010, up 15% on the year.
Toyota Motor Corp.'s Chinese sales will likely surge 20% this year to 700,000. Its sales were slow until spring due to a small number of its offerings qualifying for tax breaks, but picked up after the release of the RAV4 and Highlander sport utility vehicles.
(Source: irco.biz)
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