Car manufactures have had some problems working in Europe, but now, those problems can result in dire results. When Mitsubishi announced in July that it will be quitting Europe, it showed a wide range of problems, Japanese manufacturers have been facing in Europe, except for Toyota.
The region has become a very tough place to do business with the new technical legislations and stringent local emissions, as well as the customers’ desire for smaller cars. Some companies are thinking of leaving Europe, especially because their big markets are elsewhere. If you take these things into considerations, it is pretty evident that their decisions of leaving would be reasonable, and no doubt, beneficial to them.
The company announced that they will quit when the current generation of cars finishes production. It will focus more on the more profitable South-East Asia market. This will bring an end to the firm’s run in Europe, which began in 1975. So, you can tell that this region has not been very for such companies, and more companies can follow.
If we talk about Subaru, it can likely make the same decision, as it’s no doing much good. It sold 13,243 cars in the region in the nine months, according to the figures provided by Jato Dynamics. Suzuki had to adjust the line-up, so it can meet the new legislation, which resulted in a drop of 40% sales across Europe. The number is worse than what the pandemic resulted in.
Nissan, which has always competed with Toyota for the number one Asian manufacturer here, has fallen low. In the first 10 months of years, its sales have been less than half those of Toyota. The company’s market share here is now 2.4%, where Toyota’s shares increased to 5.2%, thanks to its hybrid vehicles, as shown by the data from European carmakers’ association ACEA. If we talk about the viable profitability in Europe, it’s a nightmare scenario for them.
The toughest challenge seems to be the emissions, as there is a threat of fines from the European Unions and the UK. Other manufacturers also have to face the same challenges, but this is a secondary market for Japanese enterprises.