TOKYO: Japanese automakers, led by Nissan Motor Co, have lost an estimated $ 250 million in output because of anti-Japan protests in China this week and now face the risk that sales will sputter in the world’s largest car market.
Chinese protesters took to the streets this week in response to an escalating dispute with Japan over ownership of a group of isles in the East China Sea, prompting Japanese automakers including Toyota Motor Corp, Honda Motor Co. and Nissan to temporarily halt operations at plants in China.
Lost production volume from those suspensions amounted to around 14,000 vehicles as of yesterday, according to an estimate by IHS Automotive. That would mean immediate lost revenue of about $ 250 million, based on an average vehicle sticker price of about $ 18,000 for the Japanese brands.
That toll could rise. Toyota said some of its China plants are still suspended, without specifying. Honda also has two factories halted, while Nissan has resumed operations.
Nissan has been the most successful Japanese automaker in China, and is most exposed now. Its projected sales in China account for 27 percent of its global sales volume, compared with 18 percent for Honda and 11 percent for Toyota.
Industry executives and analysts said automakers would be able to make up for lost output by running more overtime.
“What is more important is how consumers will react from now on,” said Koichi Sugimoto, a senior analyst at BHP Paribas.
“It wouldn’t be strange if some people start thinking that it’s better to buy South Korean cars then Japanese ones so that their cars won’t be destroyed by demonstrators.”
Moody’s credit rating agency said it was hard to predict how “rising anti-Japanese sentiment” would affect business.
“The possible implications — in an extreme and unanticipated scenario — could include the loss of access to a significant and growing market ... or a reduction in the ability of Japanese manufacturers to locate facilities in China.”
With immediately recognizable logos, Japanese cars became a target of havoc for anti-Japan protesters in China. Protesters burned a Toyota dealership in Qingdao and several more dealerships suffered damage, a company spokesman said.
A Honda dealership in Beijing sent out text messages warning customers to be careful. Photos circulated online of Japanese cars carrying banners such as “Car is Japanese, Mind is Chinese” and “From now on, I will boycott Japanese goods.”
Some Japanese companies are coming up with contingency plans in case tension escalates. Brake supplier Akebono Brake Industry is preparing contingency plans in case it faces problems in importing materials needed to supply automakers in China, the company’s CEO said.
Japanese firms lag rivals General Motors Co. and Volkswagen in China but remain keen on expansion.
Toyota aims to double sales in China to 1.8 million cars by 2015. Akio Toyoda, the president of Toyota, said Chinese consumers would recognize the contributions of Japanese automakers and their Chinese partners to the Chinese economy.
“I hope the problem will be resolved soon so that Japanese cars will be back on shopping lists,” he said.
For its part, Nissan plans to boost sales in China to 2.3 million vehicles in 2015 and has launched the made-in-China brand name Venucia together with its joint venture partner Dongfeng Motor Group Co.
Reflecting market worries about the fallout, Nissan’s Credit Default Swaps have been rising all week and hit a six-week high yesterday.
Sales in China’s auto market grew sharply in 2009 and 2010, but growth fell to 5.2 percent in 2011. Sales are up 4 percent in 2012 so far.
While the current tension may create an opening for brands like Hyundai, auto market share is unlikely to shift much as long as Beijing moves to contain the protests, said Michael Dunne, a Hong Kong-based auto consultant.
“It’s a secret to no one that there is a certain animosity that Chinese people feel to Japan for historical reasons. At the same time, it has not stopped them from buying millions of Japanese cars,” he said.
“As much as they love their flag, they love their money more.”
Japanese carmakers face $ 250 m in lost China output
Japanese carmakers face $ 250 m in lost China output
From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation
- Inside the Kingdom’s drive to merge energy expertise with digital intelligence
RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.
Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.
According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.
For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.
At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.
AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.
A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.
These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.
DID YOU KNOW?
• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.
• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.
• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.
As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application.
Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.
He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.
Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.
“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.
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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.
“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.
Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.
These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.
Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.
“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.
Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.
“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.
The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.
“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”
As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.
