Japanese brands make sales record of 4m units in China this year, with a large growth. But the market share is still lower than German brands. It still takes a long time for Japanese brands to return to leader of joint-venture brands.

It’s known that Japanese companies were beginning to adjust strategy in China after the breakout of Diaoyu Island Incident. In 2015, total sales of Japanese brands in China reached 3.4m units, growing slower than the average market. If total annual sales exceed 4m units in 2016, the annual growth for Japanese brands in China would be larger than 17%, higher than the average market growth.

Improved product qualities and market reputation is the main reason for the increasing sales volumes, believed by half interviewees during a survey. Besides, others believe the fashionable design is also a spotlight for Japanese brands. Compared with other models, Japanese vehicles also provides less operating costs, with low oil-consumption rate, low fault rate and low maintenance costs.

But debates on Japanese brands never ceases on the Chinese market. 36% of interviewees are afraid of political incidents and smashed vehicles if they have bought Japanese vehicles. This is also the main reason that pushes Japanese brands out of joint-venture brand leader position in China since 2012.