situation report

Asia-Pacific: Nissan Considering Withdrawing From South Korea After Sale Slump

1 MIN READSep 6, 2019 | 18:07 GMT

What Happened: Nissan is considering withdrawing from South Korea after Japanese car sales in the country fell by more than half in August over the previous year, the Financial Times reported Sept. 6. The company is also reportedly reexamining its role in a Renault-owned assembly plant in Busan.

Why It Matters: Although South Korea is not an extensive market for Japanese exports and Nissan's car sales in the country have been relatively small, the report indicates that the ongoing trade dispute between both countries is starting to affect business decisions by companies from both countries.

Background: Japanese auto sales in South Korea dropped by 57 percent in August from one year earlier, while Japanese beer brewers recorded a 97 percent slump in sales in South Korea from the previous year. Nissan car sales fell by 88 percent in August, while Toyota sold 59 percent fewer vehicles and Honda's sales took an 81 percent hit.

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