Do you know what car models will be sold in China?
Daihatsu was was one of the early players in China, and soon set up shop with local players to produce the iconic kei van, which became the mian bao che in China, then they set about building Charades in partnership with Tianjin Xiali, many of which still ride the streets of Tianjin en masse every day. In recent years Daihatsu hasn’t had much luck in China, despite its early entry into the market it has floundered with a lack of products, and arguably vision in the worlds largest market.
Daihatsu Motor Co., Ltd., a mini car producer in Japan, announced on January 7 that it had withdrawn from a 50-50 joint venture in China in partnership with China’s FAW Jilin Automobile Co., Ltd.
The Japanese automaker has made such a decision after it adjusted its sales strategy in the Chinese auto market. It will sell all its shares in FAW Daihatsu (Jilin) Body Parts Co., Ltd., an auto parts maker in China, to FAW Jilin.
From January to December 2008, Daihatsu sold 1.033 million vehicles, with a growth of 4 percent from a year earlier. However, its sales and net profit had witnessed the first decline in the past six years. Moreover, the Xenia, the only model that has been made in China in the form of technology transference, could hardly have a satisfactory performance.
The Japanese automaker stressed that it would continue the licensing agreement with its Chinese partners, and shared technology targeted at engines and gearboxes with them.