Renault Opens Import Company In Allegedly Closed Market Japan
Renault has realized a new trend: Imports are hot in Japan. Nissan established a new company, Renault Japon Co., Ltd., to import and sell Renault vehicles in Japan, effective April 2, 2012. Previously, Renaults were sold in Japan by a division of Nissan.
While American automakers sit sulking in a corner and complain about mythical import restrictions to Japan, European makers are looking back at a great year exporting their cars to the island nation. While the Japanese market as a whole dropped 14 percent, imports to Japan rose 22.5 percent.
With 3,068 units sold in 2011, Renaults are not necessarily brisk sellers in Nippon. Renault’s alliance partner Nissan on the other hand is the second largest import brand with 53,337 units imported in 2011.
King of the hill is and remains Volkswagen. The Volkswagen Group imported 72,028 units to Japan in 2011. You will not hear them complain about a closed market.
Because of the weak euro and strong yen, the car exported from Europe to Japan guarantee big profits, especially because the Japanese customer sees nothing of that currency windfall. Cars going from Japan to the soft-euro-zone can incur losses.
As the list, compiled using data of the Japan Automobiles Importers Association, shows, American companies do miserably in Japan. Tiny Porsche sells more cars in Japan than all of General Motors.
Registrations Of New Car Imports Japan 2011
2011Share%2010ChangeVolkswagen Group72,02826.1%63,75913.0%VW50,63518.4%46,7078.4%Audi21,1667.7%16,85425.6%Bentley1260.0%136-7.4%Lamborghini990.0%6065.0%Bugatti20.0%20.0%Renault Nissan Alliance53,33719.3%29,50480.8%Nissan50,26918.2%26,96786.4%Renault3,0681.1%2,53720.9%BMW Group48,77017.7%44,04410.7%BMW34,19512.4%32,4265.5%BMW MINI14,3505.2%11,33826.6%BMW Alpina1410.1%202-30.2%Rolls Royce800.0%748.1%Mini40.0%40.0%Daimler Benz Group34,44212.5%32,0487.5%Mercedes-Benz33,21212.0%30,9367.4%smart1,2140.4%1,10110.3%Maybach90.0%650.0%Unimog70.0%540.0%Toyota15,3775.6%10,23450.3%Fiat Chrysler Group13,4274.9%11,75114.3%Jeep3,1541.1%1,87768.0%Dodge1,1060.4%86827.4%Chrysler6110.2%777-21.4%Fiat5,9602.2%5,5627.2%Alfa Romeo1,8630.7%1,8162.6%Ferrari3860.1%493-21.7%Maserati2490.1%287-13.2%Lancia960.0%6841.2%Autobianchi20.0%3-33.3%Volvo11,9974.4%7,89452.0%PSA Group9,2313.3%8,4239.6%Peugeot6,1372.2%6,0211.9%Citroen3,0941.1%2,40228.8%Porsche3,6581.3%3,3359.7%Ford3,4691.3%3,04713.8%General Motors Group3,1021.1%2,47525.3%Cadillac1,3920.5%1,05731.7%Chevrolet1,2680.5%90540.1%Hummer2930.1%376-22.1%GMC1170.0%10610.4%Pontiac120.0%1020.0%Buick110.0%757.1%GMDAT50.0%50.0%DAEWOO20.0%20.0%Opel10.0%4-75.0%Saturn10.0%3-66.7%Suzuki3,0911.1%4,325-28.5%JLR Group2,0110.7%1,9751.8%Jaguar1,0200.4%1,138-10.4%Land Rover9420.3%77022.3%Rover490.0%67-26.9%Honda9450.3%1,292-26.9%Lotus2710.1%312-13.1%Aston Martin1400.1%12115.7%Mitsubishi1050.0%182-42.3%Hyundai Kia Group840.0%211-60.2%Hyundai810.0%208-61.1%Kia30.0%30.0%Saab600.0%63-4.8%Morgan160.0%156.7%MG110.0%757.1%Detomaso40.0%2100.0%Subaru0.0%1-100.0%Others680.0%637.9%Total275,644100.00225,08322.5%There have been many theories that tried to explain why the Americans are losing the import wars in Japan year after year. Favorite theory in Detroit is that the Japanese market is closed. When asked where and how, there are no answers. Some people cite the fact that the Japanese drive on the left – which doesn’t stop the Germans from selling a lot of cars in Japan. Culturally attuned people say the Japanese like saiku things, small precision machines. This does not help the Mini much, which sold 4 in Japan, whereas 80 monstrous Rolls were sold. Those allegedly narrow streets in Japan seem to be wide enough for 33,000 Mercedes. Inscrutable orient.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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No the 4.4Million Japanese market is not closed, only 94% is domestic. All imports combined capture 6%, with the leaders selling volumes of about 50,000 units max. It is not closed, but imports are trivially insignificant, and unlikely to be profitable for any makers.
Let me get this straight: VW, which is in the top 3 in sales in EVERY MARKET ON THE PLANET (except the U.S and Canada, strangely), sold a paltry 72k units in Japan last year and they should celebrate? That's 1.8% market share! In wee Canada, they sold 52k last year, for a 3.2 market share - and that's competing against every dog and pony show going. I mean, Canada imports everything, including it's people! All these figures prove is that the rich (or the pretend rich) will buy foreign products to flash their wealth. The hard working folks realize their money spent is political and will only buy from Japan Inc. Whatever other inducements are out there, who can say? We may never understand the Japanese consumer, who has borne 40 years of subsidizing Japan Inc via 0% loans, devalued yen, and other type of bureaucratic hurdles that have kept Japan and Korea at DEAD LAST in the OECD rankings of foreign penetration in their auto markets, But they are finally getting their just desserts: Toyota and the gang are rewarding the hapless Japanese consumer by moving all THEIR jobs offshore now. Karma is a bitch.