TOKYO (MNI) – New vehicle sales in Japan fell 26.7% from a year
earlier to 193,258 units in October, the second consecutive y/y fall
after a 4.1% drop in September, which was the first y/y drop in 14
months, as the government ended its subsidy for buying low emission
automobiles last month, data released by the Japan Automobile Dealers
Association showed on Monday.
This compares with the 46.7% y/y surge in sales in August, when
consumers rushed to car dealerships before the government finished
receiving applications for the program. It will still continue applying
lower tax rates to buying and owning low-emission vehicles.
Except for the jump in August, the pace of increase in auto sales
has continued to decelerate from +15.0% y/y in July, +20.6% in June,
+28.0% in May and +33.5% in April. In August 2009, domestic new vehicle
sales rose 2.3%, posting their first y/y rise in 13 months.
In October passenger car sales fell 28.8% from a year earlier to
171,641 units (vs. +5.4% y/y in the previous month).
Truck sales fell 3.3% to 20,968 units, posting the first y/y fall
in nine months after rising 12.0% in September, while sales of buses
slumped 25.4% to 649 units, marking the second straight y/y drop
following +27.5% in the previous month.
Separately, the Japan Mini Vehicle Association reported that
domestic sales of new mini vehicles (with engine displacement of less
than 660 cc) fell by 16.2% in October from a year earlier to 111,070,
posting the first y/y drop in 10 month following +4.6% in the previous
month.
In January 2010, mini vehicle sales showed the first y/y rise in 15
months, up 0.7%.
tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **
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