New vehicle sales in Japan fell by 5.5% to 345,226 units in April, from 365,164 units a year earlier, according to the Japan Automobile Dealers Association.
Many of this year’s buyers brought their purchases forward into the first quarter in anticipation of a hike in the local sales tax, from 5% to 8%, at the beginning of April. First quarter sales were abnormally strong with volumes rising by 21% year-on-year to 1,844,662 units.
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Sales of minivehicles continued to perform well in April, however, with sales rising by 2.8% to 156,300 units – from 151,999 units a year earlier. Sales of all other vehicles combined fell by 11.4% to 188,864 units, from 213,165 units previously.
The market is expected to remain weak throughout most of 2014. More market distortions may follow early next year, with a further increase in sales tax to 10% widely expected at the end of December.
