Japanese auto makers on Tuesday reported a sharp drop in Chinese sales last month, damaged by anti-Japanese sentiment in a dispute over a group of islands in the East China Sea.
The carmakers’ shares fell sharply as they revealed the extent of the hit, with Toyota leading the way with a 49 per cent drop in sales compared to September 2011. After Toyota came Honda, reporting a 40.5 per cent fall in China sales, then Suzuki with a 42.5 per cent fall, Nissan with 35.3 per cent and Mazda with 35 per cent.
The poor showing prompted Toyota's former chairman, Hiroshi Okuda, to weigh in, telling reporters he was bemused by the economic fallout from the bilateral political.
"To be frank, we are very puzzled by this tension in Japan and China's relations," Mr. Okuda, now president of the state-owned Japan Bank for International Cooperation, said on the sidelines of an event at the annual meetings of the International Monetary Fund and the World Bank taking place in Tokyo.
Meanwhile, the exodus from Japanese cars has in turn helped other foreign brands. Audi boosted sales 20 percent in September from the year before, BMW raised sales by 55 percent and Mercedes-Benz by 10 percent.
