Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Sunday, February 01, 2015  

China row, strong yen hurt Japan auto majors’ growth
TOKYO A Chinese boycott of Japanese goods sparked by a territorial dispute threatens to undermine the healthy recovery the nation’s top automakers made after last year’s quake-tsunami disaster, analysts say.

Despite posting profits in the first half of the year that left their stumbling electronics counterparts in the dust, the auto sector warned that the slump in China sales and a strong yen were putting the brakes on growth.

The bitter row has seen demand for Japan-brand products plunge in China, the world’s biggest vehicle market, while the persistently high yen makes manufacturers’ products less competitive overseas.

“The China factor is still unpredictable as this is politics, not business,” said Shigeru Matsumura, auto analyst at SMBC Friend Securities in Tokyo.

The concerns were highlighted again on Tuesday when Nissan warned that its profit in the fiscal year to March would be 20 per cent lower than earlier forecast, as the unofficial boycott among Chinese consumers hit business. Honda said its earnings would also shrink by one-fifth in the current fiscal year owing to the diplomatic and currency challenges.  

Toyota, less dependent on China than its rivals, raised its annual earnings forecast to $9.7 billion, saying cost-cutting and strong sales outside China and debt-hit Europe helped its performance. But Japan’s biggest automaker still warned that full-year sales would be negatively impacted by the diplomatic row.

The long-standing dispute flared again in mid-September after Tokyo nationalised an East China Sea island chain also claimed by Beijing, setting off huge demonstrations across China and the wide-ranging boycott. Japanese factories and businesses across the country temporarily closed or scaled back operations for fear of being targeted by angry mobs. Nissan’s chief operating officer said this week that visitor numbers to car dealerships in China have been “recovering gradually” and there was no plan to change its growth strategy in the country.

But chief executive Carlos Ghosn earlier warned that Nissan would think twice about making new investments in China amid the row. It has several production plants in the country, with a new factory in the northeastern city of Dalian planned for 2014. Still, the yen — which hit record highs around 75 against the dollar late last year and remains strong — may be the bigger threat to Japan’s automakers, said Eiji Hakomori, auto analyst at Daiwa Securities in Tokyo.

“China is only part of the global market,” he said.

“Japanese automakers are doing well in terms of vehicle sales — revenue in emerging markets is brisk — but if the current forex rate continues, automakers will eventually lose their competitiveness.”

Agence France-Presse
NEWS UPDATES
Oman
Chen delves into ancient art of indigo dyeing
Colourful events mark ISS annual day celebrations
GUtech moves to help develop SMEs potential
Other Top Stories
Rowhani accuses opponents of ‘cheering’ for West
Hazzm rebels join Aleppo alliance
US will likely send ground troops to counter militia in Iraq: Hagel
Romney poll race exit to boost chances of Bush
Aviation leaders mull new safety norms
India
Give us majority in Delhi: Modi
AAP promises more jobs, cut in power tariff
CBI should quiz Mamata in Saradha scam: BJP
Women should ‘play key role’ in UN peace efforts
Litchis linked to mysterious Bihar epidemic
Army tries to cut casualty figure
Agni-V’s maiden canister-based trial successful
Modi-Obama bond to ‘drive’ strategic ties
Girl flies to join Baghdadi militia, changes mind later
US rejects Pakistan criticism of N-deal
Pakistan
Mosque attack sparks anger
23 seminaries receive foreign funds: Rehman
3 polio cases reported in Sindh, toll rises to 6
Petrol prices cut by Rs7.99
Lahore police mull starting DNA profiling of criminals
Middle East
Kurds battle to expand control over Kobani
Al Nusra, Hazzm battle for control of Aleppo, Idlib
Bomber kills tribal leader, five others in Iraq
CIA, Israel plotted Damascus assassination of Mughniyeh
Egypt bans Hamas, lists it as terror organisation
Riyadh lavishes freebies to buoy economy
Asia
Hostage talks with Baghdadi militia in deadlock: Japan
AirAsia pilots ‘pulled crucial circuit breaker’
Philippines, MILF call for efforts to implement peace accord
2 Lanka war zone councils to go to polls on Feb. 28
Suu Kyi’s mansion gates up for grabs
Business
World Bank sees Sultanate fiscal gap widening to 15.2%
Ooredoo profit rises 14.5%
New CBO norms call for rigorous stress-testing exercises for banks
Bank Muscat proposes to pay 45% dividend
India revises up GDP growth
Banks see no room to cut lending rates
Al Maha Petroleum net rises
NBO proposes 27% dividend
US Q4 GDP growth slips on weaker business spending
Panasonic shuts China TV unit
Qatar Airways buys stake worth $1.7b in British Airways
Europe
Athens in bid to rework bailout, Berlin adamant
Ukraine mediators eye new ceasefire; 15 troops killed
Anti-austerity party shows strength in Madrid
Charles household ‘rife with staff infighting, dubbed Wolf Hall’
Belgium arrests 4 terror suspects
Sports
Australia lift maiden Asian Cup in style
Bravo hangs up Test boots
Serena digs deep to clinch 19th Grand Slam
Johnson fit again, boosts Aussies title bid
Woods, Mickelson miss the cut as Laird leads in Phoenix
Mayweather, Pacquiao deal likely, says promoter
Wolfsburg hammer leaders Bayern 4-1
PSG edge Rennes to cut gap on leaders Lyon
Hawks beat Blazers for 18th win on trot
N. Zealand mow down frail Pakistan

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution