— This is the script of CNBC's news report for China's CCTV on November 20, Wednesday.
Welcome to the CNBC Business Daily.
The 43rd Tokyo Motor Show is underway, with more than 170 auto firms showcasing some 150 vehicles.
The theme at this year's show will be all about shaping the future as technology meets cutting edge design.
The Japanese carmakers will be out in full force with their eco-friendly prototypes. A notable absence - the US big 3 carmakers - who've been giving the event a miss since 2009.
Making an appearance for the first time - U.S. electric car maker Tesla. And Sweden's Volvo which is making a comeback after a six year hiatus.
CNBC's Tokyo Bureau Chief Kaori Enjoji caught up with Lex Kerssemakers, Senior VP for Product Strategy & Vehicle Line Management at Volvo. And started by asking him how Abenomics was helping sales:
[Interview on tape with Lex Kerssemakers, Senior VP, Product Strategy & Vehicle Line Management, Volvo]
Kerssemakers: We are very excited to be back at the Tokyo motor show and Volvo is doing well. We have increased sales to around 18,000, whereas we used to be around 7,000 or 8,000 in 2009.
Enjoji: But the million dollar question is will it last?
Yeah, that's the question that everybody's asking. But we are very happy with the actions the government is taking. The economy is going well, and that means that car sales is going well also.
Enjoji: I have to congratulate you for making it onto the Chinese Government's procurement list. I mean, the government buys 750,000 cars - that's a lot of cars - and a lot of people try to mimic what they buy. How is this going to help with your long term objective of selling X number cars by 2020 in China?
Kerssemakers: Obviously, we are very satisfied to be on the list of the government, because that is indeed v important tool. That said however, it's up to the govt to decide which cars to buy, so in the meantime, we focus on the consumers. And also there, we see big steps for Volvo. We are doubling our sales compared to last year - the market is up 17% or 18%, and Volvo is up 42%. We are doing extremely well for the moment.
Kaori also caught up with Fuji Heavy's CEO Yasuyuki Yoshinaga, and asked him about Subaru's attempt to set up a manufacturing base in China:
[Interview on tape with Yasuyuki Yoshinaga, President & CEO of Fuji Heavy Industries Ltd.] Enjoji: You can't be selling cars to the world and not manufacture in China. When do you expect to start?
Yoshinaga: The short answer is, we have not heard a thing. To this day, we are still waiting for approval. In that sense, we have made no progress on local manufacturing in China. Right now, my plan is to export finished cars from Japan rather than manufacture in China.
Enjoji: When you played a vital role in brokering the cross-holdings alliance with Toyota, did you expect the deal to come back to haunt you like this in China?
Yoshinaga: By that I guess you mean that if the authorities approved Subaru to manufacture in China, that could be interpreted as a third joint venture for Toyota, our biggest shareholder. There has been speculation that THAT may be the reason we have not been given approval. Maybe it is part of the reason, but I have not been told frankly that our application has been denied either. We have been told nothing, so I don't know the real reason. I have heard absolutely nothing from them.
Li Sixuan from CNBC's Singapore headquarters.