Japanese auto manufacturer Toyota Motors has been facing a dip in sales in China since August. Sales of the vehicles have almost halved due to anti-Japanese sentiments following the disputed island issue in East China.

Ever since the violent protests broke out, showroom traffic and sales have dipped for the automotive giant. The violence in China had broken out after Japan had tried to purchase some of the disputed islands from a private owner. There was also a call for a boycott of all Japanese products across China mid September; following Japans attempt to acquire a group of disputed islands.

If the dip in sales continues, profits of Toyota, Nissan Motors and other Japanese brands will take a beating; as China, which is currently the world’s biggest car market, makes up a majority of Toyota’s global sales. In the month of August, Toyota sold a total of 75,300 units in China. But since the protests started, demand for the cars has gone down drastically, which has forced Japanese companies like Toyota, Nissan and Honda Motors to cut back production in recent weeks.

A spokesperson from Toyota, refused to comment on the development and said that the company would announce its Chinese sales for the month of September on October 9, 2012.


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