Japan’s new vehicle market shrank by 5% year-on-year to 369,721 units in November 2025, down from 389,529 units in the same month last year, according to registration data released by the Japan Automobile Manufacturers Association.

This was the fifth consecutive month of decline for the market, after rebounding in the first half of the year following last year’s production stoppages at Daihatsu Motor. Japanese consumers have also come under increased pressure from higher vehicle loan repayment rates after the Bank of Japan raised interest rates last year.

In the first eleven months of 2025, Japan’s vehicle market expanded by 3.4% to 4,230,318 units, after declining by over 7% to 4,091,708 units in the same period last year, with sales of passenger cars rising by 3.3% to 3,558,311 units and truck sales up by 4.0% to 662,895 units, while sales of medium and large buses and coaches declined by 2.7% to 9,112 units.

Brands affected by last year’s stoppages, namely Daihatsu, Toyota, and Mazda, have outperformed this year. Toyota’s domestic sales rose by over 4% to 1,313,934 units year-to-date, while Daihatsu’s sales rebounded by 48% to 495,132 units from depressed year-earlier levels, and Mazda’s volumes increased by 6% to 138,796 units. Brands not affected by last year’s production stoppages have not performed as well this year, including Suzuki which saw its sales rise by just over 1% to 678,404 units, while Honda’s sales declined by almost 8% to 574,898 units, and Nissan’s sales dropped by 16% to 374,749 units.

Overseas brands accounted for just over 5% of total vehicle sales in Japan year-to-date, led by German automakers such as Mercedes-Benz, BMW-Mini, Audi, and Volkswagen.