As the argument about the national of daoyu island goes on, Japanese car has suffered significant drop of sales. The long-goining debate has lead to Chinese people showing their racial sentiment by violent active such as burning down Japanese product. China is one of the biggest market around the world. In additional of the, China is also the biggest Japan’s export market. China takes up about 21% of Japanese export. Japanese car is facing a significant drop on sales. Toyota is facing a drop of 40% sales. Others car company are facing a similar amount of sales drop. Company are now being concerned about the situation of China’s market. CEO is worrying that the violent act will continue while their European competitors are getting new market shares.

In my opinion, Japanese car company has to find new strategy. They need to have a back up plan for the company. For example, they can form new sub company with some smaller China car company in order to retain the China market back. They can also swift their factory out of China in order to reduce the conflict with Chinese people.

Source:

http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/japan-car-sales-in-china-tumble-hit-by-islands-row/article4597901/