(Recasts with Q3 figure)
HONG KONG/SHANGHAI Oct 26 Dongfeng Motor Group
Co Ltd, China's second-largest automaker, posted a 30
percent drop in third-quarter net profit as consumers shunned
cars made by Japanese-Chinese ventures amid a territorial row
between the two neighbours.
Net income fell to 1.76 billion yuan ($281.97 million) in
July-September, according to Reuters calculations based on
nine-month earnings data released by the automaker on Friday.
Dongfeng made a profit of 2.49 billion yuan a year earlier.
Dongfeng's auto sales, which include vehicles sold by its
ventures with Nissan Motor Co and Honda Motor Co
, tumbled nearly 22 percent in September after a
diplomatic row over disputed islands triggered waves of
anti-Japan protests and a boycott of Japanese goods.
"Dongfeng relies heavily on the two Japanese partners. If
Nissan and Honda have fallen victim to the dispute, Dongfeng
will suffer just as much," said John Zeng, Asia director of
industry consultancy LMC Automotive.
Dongfeng's auto ventures with Nissan and Honda accounted for
nearly 80 percent of its overall sales in the first nine months.
By contrast, bigger rival SAIC Motor Corp, which
has joint ventures with General Motors Co and Volkswagen
AG, posted a 4.6 percent gain in September sales.
Dongfeng's shares closed 3.1 percent lower in Hong Kong
trading, before the results were announced, underperforming a
1.2 percent fall in the Hang Seng Index.
($1 = 6.2417 Chinese yuan)
(Reporting by Raymond Leung in HONG KONG, Kazunori Takada in
SHANGHAI, and Fang Yan in BEIJING; Editing by Ryan Woo)