Vehicle sales in Japan are expected to fall 15.6% in the next fiscal year as a result of an increase to consumption tax, according to JAMA.
JAMA said that vehicle sales for the year starting April 1 are projected at 4.75m units, slipping below the 5m level for the first time in three years.
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Vehicle sales excluding minicars are expected to drop 13.5 percent from the previous year to 2.94m while those of minicars are projected to plunge 18.8% to 1.81m.
The forecast ‘payback’ declines follow pulled forward sales ahead of the April sales tax rise to 8% from the current 5%.
A JAMA official told the Kyodo news agency said that the industry is expected to face a severe sales decline, especially after July, since automakers have been receiving strong orders that will carry over after April.
Passenger car sales are forecast to drop 16.3% to 4m units, while truck sales are likely to slip 11.8% to 736,000 units.
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By GlobalDataIn fiscal 2013 ending March 31, JAMA is expecting vehicle sales in Japan to post an increase of 8.1% from a year earlier to 5,630,800 units.
