Japan reported in July an 11th straight year-on-year rise for new vehicle sales.
The increase was due to government subsidies that helped the country recover from last year’s earthquake disaster. According to Japan Automobile Dealers Association new vehicle sales saw a rise of 36.1% to 328, 543 units in July, but the increase was down compared to June’s 40.9% rise, May’s 66.3% , April’s 92.0% and March’s 78.2%. Sales accounted for the first year-over-year gain in 13 months last September.
In December 2011 the government reintroduced the subsidies for customer’s willing to buy low-emission vehicles. The program was first ended in September 2010 causing an entire year of stagnant domestic vehicle sales. Now, due to strong demand, and the fact that the program is running out of money, the government may end subsidies this August, one month earlier than expected.
The Japan Mini Vehicle Association announced that small vehicles domestic sales (with engines smaller than 660 cc) were up 40.3% to 184,582 in July, representing the 10th straight
year-on-year rise, after the 48.4% increase from last month.