Japanese domestic new vehicle sales in 2008 will dip 1.2% from a year earlier to a 26-year low of around 5,319,400 units, the lowest level since 1982, amid modest growth in personal income, according to a forecast released by an industry body.
Go deeper with GlobalData
It will mark the fourth consecutive year of decline for the sales of overall new vehicles – passenger cars including minicars, trucks and buses – the Japan Automobile Manufacturers Association told Kyodo News.
The association also forecast overall domestic vehicle sales in 2007 to decline 6.2% to around 5,383,700 units.
The association said that any increase in sales resulting from the introduction of new models by domestic car makers in the second half of this year would likely run its course within a year.
Replacement demand for vehicles designed to meet the tougher nitrogen oxide and other toxic particle emissions regulations introduced in 2002 has worn off over the years. Higher oil and other prices are also expected to take a toll on car sales, the group told the news agency.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn 2008, domestic sales of passenger cars excluding minicars, trucks and buses are seen dipping 0.8% to 3,427,400 units while shipments of minivehicles are estimated at 1,892,000 units, down 2.0%.
”This year’s sales have been quite disappointing,” said Fujio Cho, head of the association and chairman of Toyota Motor. ”We hope to exceed the sales estimates for 2008 by marketing attractive products,” he told Kyodo News.
