Automakers in Japan Cut Sales Outlook for China by 20%

The seven major Japanese automakers have slashed their forecasts for sales in China by a combined 710,000 vehicles, or about 20%, for the fiscal year ending on March 31, The Nikkei estimates.

The newspaper calculates the shortfall will trim roughly 130 billion yen ($1.6 billion) from their collective net profit. A territorial dispute has soured Chinese consumers on Japanese brands, whose sales as a group plunged 38% year over year to 98,900 vehicles in October.

Honda and Nissan recently lowered their global net earnings projections by a combined 175 billion yen ($2.2 billion), citing the strong yen, slumping European demand and sharp declines in Chinese demand.

Last week Toyota boosted its group forecast for net income by 20 billion yen ($251 million), or 3%. The company says stronger results in Japan and North America would more than offset a 30 billion-yen ($376 million) profit hit in China.