Toyota plans to halt production next week at its Tianjin FAW joint venture plant in China because of a slump in sales according to the Japanese newspaper Asahi Shimbun.
Sales of Japanese models have been hit following a diplomatic row between Beijing and Tokyo over a string of East China Sea islands controlled by Japan but claimed by China.
The islands have rich fishing waters and are believed also to have vast mineral reserves. As a result of the dispute there have been boycotts of Japanese products.
Honda and Nissan have also reduced output at their plants in China. Tianjin FAW is Toyota’s largest of its nine factories in the country. The company said it will suspend production there for a week starting Monday, describing the move as “a production adjustment” and part of the company’s normal practice.
Toyota, Honda and Nissan reported sales in China dropped last month, with Toyota down nearly 50% year on year to 44,100 vehicles. Nissan fell 35% to 76,066 while Honda dropped 40% to 33,931 units.
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