A Mazda car. (Photo Courtesy of Mazda Taiwan)
Japanese car brands in Taiwan have decided to step up their marketing efforts to take advantage of a weaker Japanese yen, either by unleashing promotions or cutting prices.
Mazda Taiwan, the local sales agent for Japan-based Mazda Motor, took the most aggressive action, cutting its car prices in the local market by more than 3% on March 1.
Honda Taiwan, a wholly-owned subsidiary of Honda Motor of Japan, China Motor, a joint venture between Taiwanese automaker Yulon Group and Mitsubishi Motors of Japan, and Yulon Nissan Motor, a joint venture between Taiwan's Yulon Motor and Japan's Nissan, have opted for promotions instead of price cuts.
They are offering a number of perks, such as broader warranties, event data recorders, navigators with a global positioning system, in-car DVD players, and interest-free installment payment plans.
Hotai Motor, the Taiwanese sales agent for Toyota, has also offered premiums after deciding not to go through with price increases scheduled to take effect on March 1.
The country's largest automobile retailer said in late February that it would drop its original plan to increase prices by 1% in consideration of the weaker Japanese yen.
The Japanese yen hit a 33-month low of 94.77 against the greenback on Feb. 25, and has lost 10.2% of its value against the Taiwan dollar over the past three months.
Since Japanese prime minister Shinzo Abe took office in mid-December, the Bank of Japan has targeted a higher inflation rate and released more funds into the market to rekindle economic growth, resulting in a weaker currency.