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China Exclusive: Japanese carmakers absent from China auto show

(Xinhua)

07:50, October 27, 2012

SHENYANG, Oct. 26 (Xinhua) -- Japanese auto makers are reeling from a crisis in China. The latest sign is that they were asked by organizers not to attend the auto show in northeast China.

The absence of Japanese carmakers from the six-day auto show, which ends Sunday in Shenyang, capital of Liaoning Province, comes amid the lingering Diaoyu Islands dispute between the two Asian neighbors.

"Two days before the show, the organizing committee notified us to retreat from the expo," said Qi Lin, marketing manager of Guangqi Honda in Shenyang.

Clearly, this is a result of the Diaoyu Islands issue and the political climate between the two Asian giants is taking a bigger toll on the economy, said Qi.

In a promotion campaign in June, the organizers still said various brands, including those from Japan, would take part in the show that has an exhibition area of 150,000 square meters, the manager said.

The booths for Japanese brands are now being used to show auto parts and classic cars. Visitors are being advised to go directly to dealers to buy cars of 10 Japanese brands.

At auto shows over the past years, Japanese auto makers rent large exposition booths to attract potential Chinese buyers with new models. Many customers would sign purchase deals at the show.

"From past experience, Japanese brands could account for one third of all sales at the auto show," said Qi.

This was an epitome of the dominant position that Japanese carmakers had in the world's largest auto market. Auto firms, however, saw sales fall sharply last month becoming victims to deteriorating Sino-Japanese relations.

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