China Dongfeng Motor's joint venture with Nissan, Honda and Peugeot Citroen fell 16% in the third quarter, mainly due to the slowdown in China's economy. Due to the year-on-year growth of China's auto sales, which fell from 8% to 8% last year, Dongfeng and the two Japanese-funded companies have made a big splash this year. Nissan's sales fell 14%, and Honda fell 34. %, only Peugeot Citroen performed better.
In fact, it is not limited to Dongfeng Motor. Other joint ventures such as Guangzhou Motors and Toyota, Honda and Express have also said last week that the joint venture's annual profit fell 30%.
This may be because individual Japanese car manufacturers miscalculated, Honda set a very aggressive Chinese sales target, and shipped more cars than demand to the car dealer, so the company had to lower the target last week. At the same time, its style is relatively old, even if it is discounted, the price is still expensive. Nissan’s shipments are also asymmetric with demand.
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