Japanese Automakers Hold Less Market Shares

　　As long as automakers can provide good products and qualified service, they are very likely to keep a leading position.

　　Last year Japanese automakers achieved significant popularity in Guangdong with surging market shares. However, in 2010 the shares held by Japanese brands declined. In the first four months of 2010 the overall auto market of Guangdong Province maintained 30% growth year on year. In contrast, the market shares of Japanese auto brands spontaneously dropped. At the same time, all the non-Japanese automakers had a small growth.

　　For example, Shanghai Volkswagen and FAW Volkswagen account for 9.33% share in Guangdong market. In January, the proportion was only 6.33%, which means that the market share jumped by 3% within three months. Volkswagen Lavide has achieved success in Guangdong market and in April its registries ranked top-ten list in Guangdong Province. Previously, the top-ten list was filled with Japanese models. The only exception-BYD F3 also has some links with a Japanese model. It is exactly like Toyota Corolla with an attractive price. In addition to Lavida, another SUV model Tiguan also showed unlimited potentials. Though the supply was faced with shortage, in April Tiguan's registries were still higher than two main rivals-RAV4 and Highlander in Shenzhen. These messages provide more supporting materials for Volkswagen's strategy for south China.

　　A number of factors resulted in the decline of Japanese brands' shares in the auto market of Guangdong Province. First of all, the advantages of Japanese cars have been diluted. Consumers usually are concerned about cost, reliability and service quality, which are in line with the advantages of Japanese automakers. However, in a market with fierce competition, joint ventures and even domestic brands have introduced more and more fuel-efficient models which pose challenges to Japanese cars. Second, as Toyota announced massive recalls in the beginning of 2010, some non-Japanese automobile brands took the opportunity to win the consumers. In a short term their products have gained the recognition of the consumption market. A lot of dealerships of Japanese automakers once carried out large-scale price cuts to promote the sales. Even so, it is difficult to alter the situation that shares of Japanese automobile manufacturers declined in the past months. Does that mean that Japanese brands may gradually lose Guangdong market?

　　According to the Nanfang Daily, Japanese automakers still have a lot of opportunities in Guangdong Province. Consumers have deep feelings towards Japanese vehicles. More importantly, Guangdong auto market is more inclusive compared with other markets. Having a pragmatic living style, Guangdong's consumers can make a rational choice as to buying cars. They can tell the difference from automotive news and affairs between the real vehicles. In addition, the dealerships of Japanese automakers have a high-level service quality. Other non-Japanese dealerships may find it difficult to surpass the quality in a short term. There is no end for service and the contents of service keep changing and extending. Though the shares dropped, Japanese brands still account for half of the overall market. Only by providing good products and qualified service can automakers still possibly stay ahead. (Translator: Qinghua/Hanxin)

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　　http://auto.sohu.com/20100604/n272561102.shtml