Top Biz News
Wheels come off for Toyota sellers
By Wang Chao (China Daily)
Updated: 2010-03-03 10:56
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Toyota sellers in Beijing are suffering a slump in business.
On Feb 28, Tianjin FAW-Toyota Motor Sales Co Ltd, a joint venture company that sells the Toyota RAV4 sports utility vehicle (SUVs) in China, announced a recall in Beijing of RAV4s produced between March 19 last year and Jan 25 this year, over gas pedal problems. This was the third Toyota recall in China in recent months.
A sales manager surnamed Zhang from a Toyota store on Anding Road, in Chaoyang, told METRO that previously the store sold more than 10 cars a month, but this month there have been hardly any customers.
Since the end of last year 40 to 50 Toyotas have been recalled through his store.
Currently, Toyota has 33 stores in Beijing and many independent dealers in the city sell Toyotas as well.
According to the Beijing News, the parts that need to be replaced on RAV4s have reached Toyota stores in Beijing, and customers can have the gas pedal problems resolved.
The sales drop has hit car dealers in the Yayuncun automobile exchange market, the biggest car market in Beijing.
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A worker from a 4S store in Chaoyang district repairs a RAV4 car. The recall of Toyota cars has dismayed many prospective customers. [CHINA DAILY] |
"Last year, the sales of Toyota SUVs and German SUVs enjoyed similar market share; but now German cars sales are 20 to 30 percent higher," said Yan Jinhui, vice-general manager of marketing.
Chinese car buyers said they were concerned about the quality of the brand.
A woman surnamed Shen is planning to buy a car, but she said she is not considering Toyota.
At the Yayuncun market, a couple passed a Toyota store and asked a salesman; "Why are you still selling vehicles? Aren't they all recalled?"
Zhang Yang, the salesman, said comments such as these have him worried.
"Most consumers don't know much about the details of the recalls, they only know Toyota cars have problems," said Zhang.
