Tuesday, June 27, 2017

Foreign cars fry in the Internal Market The Times Japan

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Spotting a foreign car in the Japanese streets is rare especially large US companies a point stressed at the Tokyo Motor Show.
This is the third major automakers U S, including General Motors and Ford have jumped the show, which takes place every two years and which began last week.
Critics say their presence puny gives them little incentive to spend time and money trying to break the third largest car market in the world.
While domestic brands such as Toyota and Nissan have huge success in China and the United States two major auto markets worldwide, the names overseas which also include Renault, Peugeot-Citroen and South Korean rivals only accounted for 4 5 percent 5 3 million vehicles sold in Japan last year.



Some critics pin the imbalance on non-tariff barriers, they actually say close foreign car manufacturers out of the market a key issue in the free trade negotiations.
Others argue that most foreign brands offer few models have failed to find cars that Japanese drivers want to buy Exceptions are Mercedes-Benz, BMW, Volkswagen and Volvo, but even their sales are a small fraction of market.
, Called mini vehicles kei cars with small engines of 660cc or less, about one third of sales in Japan, an almost category between U S and European manufacturers.
Frédéric Bourene, head of Japanese marketing for the French manufacturer Renault chalked the challenge to the dominance of Japan's domestic manufacturers and their supply chains established and thousands of dealers.



The Japanese market is very competitive, Bourene said on the sidelines of the auto show.
There are eight domestic manufacturers already have plants here and do not need to import the logistical problems and time that goes with it.
Renault, which holds more than 40 percent of Nissan, has doubled its sales in Japan over the last four years, but it still expects to sell only 3,600 vehicles in 2013.
Between logistics costs and the exchange rate, foreign brands are about 20 percent more expensive than Japanese cars in the same range, Bourene added.


Yet, foreign automakers have long complained that the authorities stand by huge barriers to entry in the lucrative These walls include requiring companies to change the headlights on cars in Japan or to install additional expensive electronics they say.
We often add equipment to get the approval of our models, said Tomohiko Yoshioka, a leader of the Japanese unit of Peugeot-Citroen.
This is a key obstacle in trade negotiations between the European Union and Japan, as well as separate negotiations involving Tokyo and Washington leading the charge for the Trans-Pacific Partnership evoked dozen members of the proposed trade pact represent about 40 percent of the global economy.
GM, which last year was surpassed by Toyota as the biggest automaker in the world, only 34 dealers in Japan for its Cadillac and Chevrolet brands and sold only about 1,000 cars here last year against 4,700 places for its Japanese rival.



Anything that can help bridge the gap between the Japanese and international regulations would be welcome, including TPP, said George Hansen, spokesman for GM Japan unit.
Ford boss Alan Mulally was more outspoken, accusing Tokyo of manipulating sharp decline of the yen over the past year to get a commercial advantage.
The United Auto Workers union called Japan's most closed automotive market in the world, while the Association of European Automobile Manufacturers said earlier this year that he supports free trade agreements that are balanced and offer real export opportunities.
We still have some reservations about an FTA with Japan, he said.
German carmakers Volvo and Sweden did better, accounting for about three-quarters of foreign cars sold here.



Volkswagen, the third largest producer in the world whose brands fall squarely in the economy of mid-range, plans to sell 60,000 vehicles in Japan this year.
Japanese consumers do not like to take risks, and they want to have confidence in the brand they're purchasing, the company said.
We work on our image with Japanese celebrities well known to improve our connection with consumers.
Satoshi Hoshikawa, spokesman for BMW said the company sold 40,000 cars in Japan last year because we constantly change our models to meet the needs of customers with a range of models, including diesel and hybrid deals a nod to the pilots of the country tend to wait fuel-efficient wheels.



But the presence of Volkswagen on the key market has a significant cost, said a competitor.








Foreign cars fry in the Internal Market The Times Japan, aliens, cars, small.