Japanese car firms face rocky sales road

Conditions have improved in China for Japanese vehicle producers, which saw their sales slump amid the Diaoyu Islands dispute in 2012. But the Japanese companies are still facing tough challenges in regaining market share.

Honda Motor Co said its March sales in China dipped 2 percent year-on-year to about 60,000 vehicles, following a 31 percent surge in the first two months. The company attributed the decline to delays involving two upgraded models produced by its joint venture with Guangzhou Automobile Group Co Ltd, which itself reported a sales drop of 13 percent in March.

The company aims to deliver 900,000 Honda vehicles in China this year, which would be up 19 percent from last year.