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Product portfolios of Japanese automakers China capitulates: Another round of auto stimulus

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Product portfolios of Japanese automakers in China are the least
exposed among all brands to the latest auto tax cut, given that 51%
of the vehicles they sold this year were equipped with engines larger
than 1.6 liters.
Honda, a partner with Dongfeng and Guangzhou Auto in China,
only got 20% of sales from small cars that qualify for the tax cut,
close to the ratios of luxury carmakers. A wide range of small cars
at Volkswagen and Ford may help those companies revive sales
and gain market share.

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Product portfolios of Japanese automakers in China are the least exposed among all brands to the latest auto tax cut, given that 51% of the vehicles they sold this year were equipped with engines larger than 1.6 liters. Honda, a partner with Dongfeng and Guangzhou Auto in China, only got 20% of sales from small cars that qualify for the tax cut, close to the ratios of luxury carmakers. A wide range of small cars at Volkswagen and Ford may help those companies revive sales and gain market share.

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