New car sales in Japan are expected to fall by almost 10% to 4.4m units in 2011, the lowest level for 34 years, the Japan Automobile Manufacturers Association predicted.
The association blames the decrease on the end of government subsidies for people to buy environment-friendly vehicles and the uncertain outlook for Japan’s economy.
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If the prediction is true it will mark a fall of 40% from 1990 when new car sales topped 7.7m and the lowest level since 1977 when they were 4.2m.
Toshiyuki Shiga, chairman of the association, said at a press conference on Friday that, for several months from January next year, sales are expected to see a year-on-year monthly drop of over 10%.
”We hope to see a year-on-year monthly increase from around autumn through the launch of new cars and sales promotions,” he said, while adding that global sales would remain strong due to recovery in the US and robust demand in China.
Shiga also said that total domestic production would likely be below 10m units for 2010 due to the appreciation of the yen but that it would recover to top the 10m mark the following year on stronger foreign markets.
JAMA is forecasting that 2010 will end with 4.9m sales, a 7.5% increase over 2009 and the first increase in six years.
