Chinese state-owned carmaker FAW gearing up to compete in the Japanese market

Chinese state-owned automaker China FAW Group Corp. has released the Hongqi H9 sedan in Japan in gas-powered and hybrid versions to make inroads in the country's unconquerable market.

According to an import agency, 10 Hongqi automobiles were shipped to Japan by the end of June, with prices ranging from 5.8 million yen to 9.8 million yen before tax.

An electric sports utility model is expected to arrive in September.

Most Hongqi automobile purchasers in Japan are Chinese residents and those of Chinese origin who have obtained Japanese citizenship.

It is challenging to import Chinese-made vehicles to Japan as they must meet the country's stringent standards.

To overcome the challenge, the FAW Group fully backed the importing agent.

The importation was done in the form of parallel importing but virtually represents the official FAW Group sales.

Tomoyuki Suzuki, an official at research firm AlixPartners LLP, said that China's automobile brands could crack open the Japanese market.

He noted that upon establishing a sufficient sales network, the low-price Chinese-produced cars may replace the Japanese-made 660cc mini-vehicles.

Suzuki added that with Japan’s average income on the decline, it is increasingly difficult for some Japanese to buy cars, making it likely for Japanese motorists to accept Chinese products.