Japan’s new vehicle market finished 2024 on a weak note, with sales falling by over 9% to 329,786 units in December from 362,839 units a year earlier, according to registration data released by the Japan Automobile Manufacturers Association (JAMA).
December’s decline caps off a year of severe disruption for the country’s automotive industry, which was afflicted by prolonged production stoppages at Toyota Motor Corporation following the safety-test rigging scandal at its Daihatsu subsidiary which came to light at the end of 2023.
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Over the full year, the country’s vehicle market declined by over 7%, to 4,421,494 units, after growing by 14% to 4,779,086 units in 2023. Sales of passenger cars fell by just under 7% to 3,725,200 units, while truck sales dropped by over 12% to 686,197 units. Sales of medium and large buses and coaches continued to grow strongly during this period, increasing by 20% to 10,097 units.
Toyota’s domestic sales fell by over 14% to 1,355,581 units last year, while Daihatsu’s sales plunged by more than 38% to 366,635 units, and Mazda’s sales were down by 20%, at 141,965 units. Automakers not affected by the Toyota group scandals fared much better, including Suzuki which enjoyed an 11% sales increase to 721,785 units; Honda with 668,414 units (+12%); and Nissan with 475,569 units (-1%).
Overseas brands account for around 5% of total vehicle sales in Japan, led by German automakers including Mercedes-Benz, BMW-Mini, Audi and Volkswagen. China’s leading electric vehicle (EV) manufacturer BYD Auto strengthened its Japanese lineup last year, as it looked to establish an early presence in the country’s emerging zero-emissions vehicle segment.
The latest government data shows Japan’s economy expanded by 1.2% year-on-year in the third quarter of 2024, down from 2.2% in the second quarter, reflecting declining capital expenditure and slower export growth. Private consumption growth accelerated, however, driven by temporary income tax cuts as part of a government stimulus package and recent wage hikes.
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By GlobalDataThe vehicle market in 2025 is expected to rebound from last year’s setbacks, supported by steady economic growth forecast at around 1.2%. The new government under Prime Minister Shigeru Ishiba is expected to continue to support domestic economic growth, with a focus on driving up wages and household incomes, revitalizing regional economies and encouraging corporate investment.
