New car sales in Japan fell 9.3% in 2009 from the previous year to 4,609,255 units as the global recession took its toll, slipping below 5 million for the first time in 31 years, according to figures from the Japan Auto Dealers Association (JADA).

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The total included sales of vehicles with engine displacement above 660cc, which declined 9.1% to 2,921,085 units, below 3m units for the first time in 38 years. Sales of smaller vehicle dropped 9.7% to 1,688,170 units.


However, new car sales rose for a fifth straight month in December helped by tax incentives for motorists to buy more environmentally sound vehicles.


JADA said 250,474 cars, trucks and buses were sold last month, up 36.5% from a year ago.But the industry is concerned about the future as many young people in large cities opt for public transport to avoid the high cost of maintaining cars.


Weak consumer spending during the recession has also weighed heavily on the sector, while exports to major overseas markets have slumped, prompting Japanese makers to idle plants and cut thousands of jobs.

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