Toyota and Nissan, Japan’s top two car companies by revenues, sold more than 100,000 fewer cars in China last year than in 2011, as territorial tensions between the countries escalated into a consumer backlash, writes Ben McLannahan in Tokyo.

The figures, published yesterday, mark the first time that either company has seen a fall in sales in China, the world’s largest car market, since they set up joint ventures with local partners in 2003. Toyota said its new car sales in China fell 4.9 per cent last year to 840,500 units, while Nissan posted a 5.3 per cent fall to 1.18m units.

Japan’s carmakers have increased discounts and spent more on advertising to lure back Chinese customers after protests broke out in cities in September, triggered by Tokyo’s decision to nationalise a chain of islands also claimed by Beijing.