The global popularity of Korean cars stands in stark contrast to the subdued state of the Chinese market. Indeed, Korean car sales in China have plummeted from a peak of 1.14 million in 2016 to 385,000. Japanese cars, sharing a similar fate with their Korean counterparts, have seen major brands like Toyota, Honda, and Nissan announce 2023 sales data for China. Toyota recorded monthly sales of 110,000 vehicles, a year-on-year decrease of 23.5%; Honda's monthly sales were 64,000 vehicles, down 56.2% year-on-year; and Nissan reported monthly sales of 47,500 vehicles, reflecting a 64.4% year-on-year decrease.
Just as the Japanese and Korean entertainment industries once sparked a wave of pop culture in China, Japanese and Korean cars also experienced a bright moment in the Chinese market. However, this was short-lived, and Chinese consumers soon abandoned Japanese and Korean cars. Faced with the impressive performance of China's domestic new energy vehicles, Japanese and Korean executives have even become envious. Early this year, Yang Honghai, COO of Kia, vented his frustration on his personal social media account, accusing BYD of employing internet trolls to discredit Kia Motors. Many speculate that Yang Honghai's outburst was a calculated move to generate exposure for the launch of the new Kia K3. After all, their primary goal now is to reverse the unfavorable situation as quickly as possible.
So, why have Japanese and Korean cars, once extremely popular in China, been gradually forsaken by the Chinese market? Why are Korean car companies so irate with BYD? Well, that's exactly what we're going to delve into. Let's get started!
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