TOKYO, May 2 Reuters Japan39;s automakers are facing a sales crisis in China, data shows, as a rapid shift to electric vehicles EVs has upended the world39;s largest auto market and led to a plunge in purchases of gasolinepowered cars.

Total sales of Japanese auto brands in China were down 32 yearonyear in the first quarter, more than double the pace of the overall market contraction, industry data analysed by Reuters showed.

While other automakers like Volkswagen AG have also been caught out by the sharp shift in China, Japanese automakers stand out because of their limited showing in the fastgrowing category of electric and plugin hybrid sales.

Production and margins will come under pressure in China as automakers cut output and prices of gasolinepowered cars to keep inventories in check, analysts say, in a worrying sign of the competition Japanese automakers could increasingly face outside their home market.

Especially Japanese automakers face a little bit more inventory of new cars, in China, Yasushi Matsui, chief financial officer at parts supplier Denso Corp, said last week. They are making adjustments.

Mitsubishi Motors Corp, said last week it had suspended production of its Outlander SUV in China for three months and would take a charge of 77 million for slowing sales at its joint venture with stateowned GAC Group.

Mitsubishi, like some other Japanese automakers, does not break out China sales figures. Industry data analysed by Reuters showed its…

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