Tuesday, 2nd November 2010
In General Japan News,
Motor sales fall in Japan
New figures show that sales of vehicles in Japan have fallen by more than a quarter over the past year.
Total sales in October stood at 193,258 cars, trucks and buses – 26.7 per cent less than in the same month in 2009, according to the Japan Automobile Dealers Association (JADA).
There are concerns within the industry that the strong yen could continue to impact on sales over the coming months, reports the Wall Street Journal.
A JADA spokesman explained: "Many car makers and dealers expect a fall of 30 per cent to 40 per cent after October.
"We are concerned that the [business] environment will deteriorate as consumer sentiment worsens."
Car sales have also been hit following the removal of government subsidies that supported the purchase of fuel-efficient vehicles.
Both Mazda Motor and Honda Motor have reduced their earnings forecasts for the second half of the year.
JADA represents 14 Japanese automobile manufacturers including Toyota, Suzuki and Kawasaki.
Written by Susan Ballion.