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Japanese brands unlikely to cut prices despite weaker yen

Japanese brands unlikely to cut prices despite weaker yen

Taipei, Jan. 22 (CNA) Prices of Japanese brands in Taiwan, ranging from cars and clothes to food, are unlikely to be lowered in the near future, despite a weaker yen, businesses said Tuesday. Hotai Motor Co., the Taiwanese sales agent for Toyota, said that although it will not lower prices, it has decided to postpone an originally planned mark-up time from January to March. The country's largest automobile retailer decided last October to raise prices by 3 percent due to production cost increases, but after considering the weaker yen, Yu Shiao-chung, general manager of Hotai Motor's External Affairs Division, said: "We'd like to compromise." "We still need to raise prices, but what we can do is postpone the scheduled time," Yu told CNA, adding that his company holds regular meetings with the Japanese headquarters to relay public opinion. Meanwhile, Japanese clothes brand Uniqlo said it will not mark down prices as its factories are located worldwide and shipments and production are all valued in U.S. dollars, not Japanese yen. Mister Donut Taiwan Co., which imports its ingredients from Japan, said it is unlikely to cut prices due to the "short-term fluctuation" of the Japanese currency, adding that its products are already inexpensive. The Japanese yen traded mostly at under 80 yen to the U.S. dollar from mid-July 2011 to mid-November 2012, but has shattered the 80 yen barrier since then. The Japanese currency hit a 30-month low at around 90 yen to the greenback Jan. 18 after Japanese Prime Minister Shinzo Abe said a yen level of around 90 yen to the dollar would benefit Japanese exporters and called for a higher inflation target. (By James Lee)


Updated : 2021-05-15 17:31 GMT+08:00