Japanese carmakers are facing a dilemma. They have to trim their global output capacity amid a stagnant world economy that has weakened their financial health while trying at the same time to gain stronger footholds in emerging markets, experts say.
Particularly in the fast-growing Chinese auto market, slow-starting Japanese automakers must focus on producing affordable cars without ruining their brand image.
"Japanese makers focused extensively on North America, but because of the Lehman shock, it will take a few years for the market to start recovering," said Yasushi Terasawa, chief strategist at SC-ABeam Automotive Consulting, noting the importance of the Chinese market.