Auto sales in Japan last month increased at the slowest pace in the past 11 months.
Although analysts expected a boost in auto sales before the expiration of government purchase incentives, Japan’s industry increased indeed, but at the slowest pace in the past 11 months. Sales of new cars, buses and trucks were up 7.3% compared to the same period last year. This is the 12th consecutive month of auto sales growth, but the lowest since September 2011, which reached a 1.7% increase.
“To be honest, we had expected a stronger buying rush,” a JADA spokesman said. “Customers are acting in a calm manner even though they know the budget is going to dry up soon.”
In July auto sales were up 36.1%, in June were up 40.9% and in May 66.3%, due to the fact that customers were attracted to the showrooms thinking that the 300 billion yen ($3.83 billion) subsidies will exhaust before the expiration date in January. According to the Next Generation Vehicle Promotion Center on August 30th there were left 26.2 billion yen subsidies. Last year, when the subsidies were about to run out sales increased almost 50%.