Small Japanese SUVs outpacing supply in Beijing

[NINETY EIGHT REGENCY]

Small Japanese SUVs outpacing supply in Beijing

04/28/2010, 2:19 AM BY MARK KLEIS

While attending the ongoing Beijing Auto Show, consumers are being presented with seemingly countless options of electric and hybrid gas-electric vehicles. Outside of the show, however, consumers are opting for gas-powered SUVs and shunning hybrids and electric vehicles at dealers.

According to Gasgoo, several Toyota and Honda dealers in Beijing are complaining of shortages of small SUVs, while hybrid vehicles are having to be sold at a loss to clear them from dealer lots.

Beijing Honda dealers explain that customers in Chaoyang, a district of Beijing, must wait two months to receive the Honda CR-V they ordered, which has fueled dealer price mark-ups. By contrast, the Civic hybrid won’t even sell at sticker its sticker price of $39,550.

Toyota is facing similar woes, with one Beijing Toyota dealer telling Gasgoo that it only has two RAV4 SUVs in stock, and urgently needs more supply to meet demand. The dealer explained that the recent recalls by Toyota haven’t resulted in any complaints from customers, nor a slow down in purchasing. The RAV4 was recalled in China for its global faulty gas pedal problem.

Executives from both Japense automakers commented at the Beijing Auto Show that they are not overly concerned about the potential for the Chinese government to remove tax cuts on new car sales in the near future as their larger models are selling well enough in the Chinese market.

A deputy president of the Honda factory located in Wuhan, China, said that the plant is running overtime in order to produce 1,013 CR-V SUVs each day.

link:

http://www.leftlanenews.com/small-japanese-suvs-outpacing-supply-in-beijing-china.html