Japan's new vehicle market declined by 0.8% to 394,254 units in December from 397,534 a year earlier, according to registration data released by the Japan Automobile Manufacturers Association.

This was the third consecutive monthly decline last year and came amid reasonably buoyant economic conditions in the country. Third quarter GDP expanded by 1.7% year on year, driven by rising exports and strong corporate investment growth.

The recent market decline was attributed mostly to Nissan Motor, which was forced to temporarily suspend deliveries in October following revelations that it had used unqualified inspection personnel at its domestic plants.

The brand's domestic sales continued to decline sharply in December, by almost 19% to 37,963 units, after falling by 27% in November and 43% in October. Prior to this, the brand was performing strongly in this market.

Total vehicle sales in 2017 increased by 5.3% to 5,234,166 units compared with 4,970,258 units in the previous year, underpinned by strong demand for mini vehicles and compact/subcompact cars. 

Passenger vehicle sales increased by 5.8% to 4,386,378 units last year, while truck sales were up by 2.9% at 832,195 units and bus sales were 0.6% higher at 15,593 units. 

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Toyota's sales increased by 3.8% to 1,587,062 units in 2017 followed by Honda with a 2.5% increase to 724,834 units; Suzuki 665,871 units (+6.9%); Daihatsu 630,856 units (+7.5%); Nissan 591,000 units (+10.6%); and Mazda 209,689 units (+4.1%).