Car Sales in China Slip 2% for Japan’s Big Three

Toyota says demand for its vehicles jumped 9% to 76,900 units in China in May compared with a year earlier. But Nissan and Honda report their volumes last month dropped 8% to 101,400 units and 6% to 61,000 units, respectively.

Nissan blames a comparison to abnormally high sales in May 2012. Honda cites a drop in available cars as the company prepares to switch to a new version of its Accord sedan this autumn.

But analysts point to two bigger factors: the lingering negative impact of last year's territorial dispute between China and Japan and a flood of competitive vehicles from the likes of Ford, General Motors and Volkswagen.

The share of China's car market held by Japanese carmakers in the first five months of 2013 was about 14.5%, according to the China Assn. of Automobile Manufacturers. That compares with 16.4% and 19.4% for the same periods in 2012 and 2011, respectively, according to the group.