The Japan Automobile Manufacturers Association is continuing to lobby for the government to get rid of automobile taxes, new chairman Akio Toyoda told his first news conference.

The Toyota president said that ending automobile acquisition and tonnage taxes is one of the associations' goals for the current fiscal year. He added: “If the automobile acquisition tax is added on to a higher consumption tax currently under discussion, it would create a huge burden for consumers.

"We need to establish as soon as possible a cycle in which car owners can buy new models to replace their current vehicles without straining (their finances)."

He also said that auto taxes need to be abolished to minimise the impact of the expiration of eco-car subsidies on domestic sales.

"Due to the strong yen and other factors, the industry is facing a dangerous situation in which production bases will continue to be moved overseas and the supply chain could be annihilated."

Toyoda said that the business environment remains tough but JAMA is committed to protecting its domestic production.