Japanese car sales in China hurt by diplomatic dispute

The diplomatic dispute between Japan and China over islands both have laid claims to is affecting sales of Japanese car makers in the world’s biggest auto market, a senior official with the country’s official industry group told Reuters on Monday.

Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), told a news conference that Japanese car sales had slowed in August and he believes it was related to a recent political dispute between Japan and China.

Nissan’s Chief Operating Officer Toshiyuki Shiga said last week that the row over disputed islands in the East China Sea was having “some impact” on sales of Japanese car manufacturers as they were having difficulty in holding big, outdoor sales promotion campaigns.