GM Launches Japanese Online Auto Shopping Service

Market Dynamics

For GM, Suzuki, Fuji and Isuzu, the new venture is a no-brainer. Despite the country's economic woes of the last decade, Japanese consumers still have a great deal of disposable income at their command and are among the most active online shoppers in the world.

Japan has some 47 million Internet users, Mark Hogan, GM group vice president responsible for e-commerce, has said in wire reports and news accounts. More importantly, last year the country accounted for 62 percent –- or US$9.5 billion -– of regional e-commerce, he added.

As for Japan Auto Web Services, the new company's combined market share automatically has made it the number two automotive group in Japan with some 17 percent of the market, according to Rudolph Schlais, GM group vice president and president and CEO of GM Asia Pacific.

Consumer Tastes

Japanese consumers will have a number of new choices and service options at their disposal. Customers will be able to choose from 65 vehicle models in 179 variations, ranging from compact cars to larger, luxury sedans.

Like many other car-buying Web sites, BuyPower Japan offers shopping preliminaries -- the ultimate sale must be finalized at a local dealership participating in the venture. However, while this may be considered a hassle in the United States, in Japan the consumer tends to value the face-to-face transaction.

GM hopes that the venture will go a long way toward changing the Japanese perception of American cars and American sales methods. While many imported brands –- especially those from Europe and in particular, Germany –- are highly valued in Japan, U.S. imports do not have as much cachet.

Goal To Expand

GM said it would like to expand its auto exports to Japan to about 100,000 units a year from its current level of 35,000. The new Web site, the company anticipates, will help it reach that goal.