Subaru maker Fuji Heavy Industries has put on hold plans to manufacture vehicles in China due to slowing demand.
The company now will not commence local production “even if the Chinese government approves” its planned joint venture with Chery Automobile.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Executive vice president Akira Mabuchi said: “Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan.”
According to Bloomberg, vehicle sales growth in China declined to 6.9% in 2014, from 14% in 2013. In 2015, the country’s economy is expected to grow at the slowest pace since 1990.
