Sales of Japanese Cars Plunges in China

Sales of Japanese vehicles in China plummeted in September amid strong anti-Japan sentiment stoked by a territorial dispute between the two countries over an island chain in the East China Sea.

Fear as well as anger crushed sales, Japanese automakers say. After Chinese protesters overturned and smashed Japanese cars last month, consumers say they are afraid that driving a Japanese model could make them a target for violence.

September sales in China plunged 49% to 44,100 vehicles at Toyota and 35% to 76,100 units at Nissan the largest year-over-year decline for any month at each company. Honda's volume dropped 41% to 33,900 units.

Other foreign automakers appeared to benefit from Japan's losses.

General Motors boosted volume in China 2% to a September record of 244,300 units. Volkswagen says sales of its namesake and Audi brands rose 21% to an unspecified total. Demand rose 10% to 127,800 vehicles at Hyundai-Kia and jumped 35% to 59,600 units at Ford.

German luxury brands fared especially well in China last month, including Audi (+20% to 35,500 vehicles), BMW (+55% to 27,000 units) and Mercedes-Benz (+10% to 16,800 units).