OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMJAPAN'S EXPORTS TO CHINA AND U.S. DROP AMID WEAK AUTO DEMANDAt this week's Paris Motor Show, a number of Europe's largest automakers debuted affordable electric vehicles (EVs) in an attempt to boost a decline in demand and reclaim some of the market share currently occupied by Chinese companies.The biennial industry expo, which began in Paris on Monday and continues through Sunday, is regarded as having the potential to be a game-changer for the European auto sector.Julia Poliscanova, senior director for vehicles and e-mobility supply chains at the Transport & Environment campaign group said "There are so many new models on show, and what is really great is that there are a lot of launches that are more affordable. So, Citroen, Peugeot [and] Renault, they are all showing some smaller affordable models"On a journey to complete electrification, European automakers have been facing a number of issues, such as a lack of reasonably priced models, a slower-than-expected rollout of charging infrastructure, and an expected trade war with China.Car makers have attempted to utilize the Paris Motor Show as a platform to introduce a variety of affordable models because they are well aware of the need to increase EV sales.For instance, the Twingo E-Tech electric prototype was initially shown to the public by the French automaker Renault. When the all electric vehicle hits the market in 2026, it is anticipated to start at less than 20,000 euros ($21,800). Japan's exports to China, its largest trading partner, decreased by 7.3 percent in September compared to the previous year, and exports to the United States also saw a 2.4 percent decline, as per the data. Lack of strong demand for auto manufacturers caused export decreases in both nations.Data disclosed on Thursday (Oct 17) revealed that Japan experienced a decline in exports in September for the first time in 10 months, which is concerning for policymakers due to the potential complications it may cause for the central bank's transition away from ultra-easy monetary policy after years.Exports were negatively impacted by weak demand in China and slowing US growth, with the yen's recent strengthening adding to the pressure on export values, partly driven by the Bank of Japan's surprising rate increase in late July."It's possible that exports will continue to struggle in coming months in light of uncertainties particularly in the Chinese economy," Kazuma Kishikawa, economist at Daiwa Institute of Research, said.He stated that China's stimulus packages are not having the expected effect as domestic demand in the country seems to be weaker than anticipated. AUTO GIANTS LAUNCH WAVE OF AFFORDABLE EVS, CHALLENGING CHINA'S DOMINANCEIMPORT IMPORTEXPORT
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