BEIJING -- Panasonic is pushing to double its sales of air purification systems in China, as customers there look for ways to counter the country's severe air pollution.

The Japanese electronics maker is planning a 20% to 30% workforce increase to help accelerate product development and tailor its sales strategy for the Chinese market. This way, it hopes to double the sales by fiscal 2020, compared with the fiscal 2016 level.

It will have competition, though: Japanese rivals Mitsubishi Electric and Daikin Industries are also gunning to sell more air purification equipment in China.

Panasonic already leads the Chinese market for air cleaning systems -- the only product category in the country in which it ranks No. 1 -- according to Yoshiyuki Hanamura, managing director of Panasonic Ecology Systems Guangdong. "We will raise our market share of a little more than 20% to 30% by fiscal 2020 to solidify our presence," Hanamura told reporters at news conference in Beijing on Dec. 26, 2017.

By value, Hanamura said Panasonic aims to raise sales of air purification systems in China to 2.3 billion yuan ($350 million) by fiscal 2020, from 1 billion yuan in fiscal 2016.

Panasonic unveils two new air purification systems in Beijing on Dec. 26.

Panasonic runs an integrated operation in China, with the team handling product development, production and marketing. It will add personnel for development and marketing and making the most of automation for production. It will also deepen tie-ups with major e-commerce companies to boost sales in big cities, and increase the number of dealerships in regional cities by 50%.

Until now, the company has been focusing on systems built into new homes, but it will look to promote products designed for existing homes, along with schools and offices. It expects the larger sales force will help it promptly recognize local needs to get the jump on rivals.

Panasonic unveiled two new models at the Dec. 26 news conference -- one designed to be built into the ceiling of condominium rooms, the other made to be mounted on the wall. Both models can capture more than 98% of PM2.5, the tiny smog particles that measure 2.5 microns wide. Both can be controlled with a smartphone.

Japanese contingent

Japanese companies are standout performers in China's air purification market. Panasonic, Mitsubishi and Daikin are all among the top five suppliers.

Mitsubishi has developed an air purifier that removes PM2.5 and pollen using static electricity. The device is designed for use in ventilation systems, and Mitsubishi plans to launch commercial production in fiscal 2020 after trials in China.

Unlike conventional electric dust collectors, the new machine does not discharge, reducing the risk of fire, Mitsubishi said. The device is based on technology for controlling static electricity, which the company gained through plastic recycling and other operations.

Daikin, meanwhile, is promoting a high-end, home-use air conditioner that uses a single compressor to manage the temperature in multiple rooms.

The built-in home air cleaning systems Panasonic is promoting form a market worth an estimated 4 billion yuan to 5 billion yuan per year. The market is projected to maintain double-digit growth for some time -- even as the housing market grows at a rate of about 5% annually -- as increasingly environmentally aware citizens install units in existing dwellings.

Back in Japan, Panasonic holds the biggest market share in ventilation systems that keep rooms comfortable by efficiently transferring indoor and outdoor air and humidity. It seeks to combine this technology with air purification as China increasingly focuses on energy efficiency as well.

Comeback trail

Panasonic's presence in China dates back decades. Deng Xiaoping, the paramount leader who initiated China's policies of reform and opening up, in 1978 visited Panasonic founder Konosuke Matsushita in Osaka and asked for his assistance with modernization. In 1987, Panasonic became the first Japanese manufacturer to establish a production base in China, setting up a joint venture plant for cathode-ray tubes in Beijing.

Over the years, the Japanese company continued to build new production facilities and expand its business there. But it began to lose its edge as local competitors emerged, and it pulled the plug on TV production in China in 2015.

Panasonic has fallen behind local rivals in the Chinese market for white goods as well. In April 2017, the company set up a new Chinese unit to oversee home appliance operations there and put Wu Liang, a local Panasonic executive, in charge.

As with air purification systems, the idea was to give the Chinese unit management authority over product development, production and sales, affording it the flexibility to meet local needs. So far so good: Panasonic is enjoying strong sales of high-priced appliances, including beauty equipment, in China in the current business year.