Japan Automobile Manufacturers Association chairman Akio Toyoda has urged the Japanese government to review automobile-related taxes to help stimulate the domestic market.

The Toyota chairman said he expects a sales drop in Japan when the current subsidy programme for eco-friendly vehicles ends soon. He added: “There will certainly be an impact. While we are grateful for the subsidy programme we want the government to seriously consider fundamentally reforming taxes on automobiles.”

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JAMA estimates vehicle demand this year will grow by 800,000 units compared with the year before, attributing this rise mostly to subsidies. Japan’s new vehicle sales in the first half of this year jumped 53.6% year on year to 2.95m.

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