The sobering outlook also reflects the state of Japan’s economy. With more than 1.3 million passenger cars shipped during the first nine months of 2016, North America remains the biggest export destination for Japanese carmakers.

This was double the number of vehicles exported to Europe, and four times the number delivered to Asia, including China.

Toyota is projecting operating profit to fall by 40 percent to JPY 1.7 trillion (US$16.3 billion) for the fiscal year ending in March.

The two carmakers are seeing growing prospects for Asian markets instead. Toyota is projecting 1.56 million vehicle sales for the region, 90,000 more vehicles than was forecast three months ago. Nissan is eyeing 1.3 million vehicle deliveries this year, in addition to an 8.2 percent increased sales in China.

Passenger vehicle deliveries rose 20 percent in October to 2.22 million, according to the China Passenger Car Association. This was in part due to Chinese consumers rushing to purchase models with smaller engines before a tax cut rebate expires at the end of 2016.

While the Chinese government might extend the rebate, it may still impact buying behaviour in the fourth quarter this year.

APMEN News, Nov 2016