Toyota Motor Corp. expects vehicle sales in Japan to drop by around 20 percent in 2013, partly due to the expiration of government tax incentives for fuel-efficient vehicles, according to local newspaper Mid-Japan Economist. Japanese vehicle sales account for around 30 percent of Toyota's overall sales.
According to industry data, domestic new vehicle sales have shrank each of the past three months, since the government ended its tax incentives for purchases of fuel-efficient cars in mid-September 2012. Toyota is now expecting to sell around 1.36 million Toyota-brand vehicles in Japan in 2013, down from the 1.67 million sales target for 2012, according to the Mid-Japan Economist, without citing sources.
The Mid-Japan Economist noted that a backlog of orders following supply-chain distractions that stemmed from the 2011 earthquake and tsunami disasters in Japan. However, a spokesman for Toyota remarked the carmaker has decided nothing yet about its 2013 domestic sales target.
In November, Toyota reduced its group-wide 2012 global sales forecast – including figures from Daihatsu Motor Co. Ltd. and Hino Motors Ltd. -- to 9.66 million vehicles, from a previous prediction of 9.76 million vehicles.
Toyota updated its sales forecast after experiencing demand drop in China due to a territorial dispute between the country and Japan. Toyota said this week that its sales in China dropped 22-percent year-on-year in November, following a 44-percent decline in October and a nearly 50-percent dive in September.