Japan: New vehicle sales up 25 percent in October – table image

After 14 month of decline, new vehicle sales in Japan have shown a strong growth of 25.2 percent from a year earlier to 381,114 units in October according to the Japanese Automobile Manufacturers Association.

Excluding mini-vehicles, in October, new vehicle sales totaled 247,927 units, up 28.3 percent – the second straight monthly rise.

The Association reports that from January 2011, there were 756,615 passenger cars sold, 115,846 trucks and 11,132 buses.

Mazda Motor Corp. vehicles surged 88.0 percent to 11,457 units, Mitsubishi Motors Corp. soared 62.5 percent to 4,063 vehicles, Toyota Motor Corp. sales rose by 20.4 percent to 122,208 vehicles, Nissan Motor Corp. sales by 32.5 percent to 33,631 units, while Honda sold 36,355 vehicles – up 19.5 percent.

However, the Japanese automotive industry has been heavily damaged by the deadly tsunami that followed the March 11 earthquake that hit northeastern Japan.

Just as they were starting to recover and make up for lost production, the recent flooding in Thailand has disrupted the supply chain again.

In addition, the strong yen is causing huge difficulties. Six of Japan’s eight major automakers posted group net profit declines for the April-September first half due to the yen’s appreciation.

The nation’s automobile organizations urged the government Monday to terminate automobile acquisition and weight taxes, while calling for new incentives to help sell environmentally friendly vehicles, after the current tax benefit system ends next year.
Annual domestic sales have fallen by nearly half from a high of 7.8 million vehicles in 1990, according to the AP.