Domestic sales in Japan are expected to recover in 2012

Article by Christian A., on December 21, 2011

Domestic sales in Japan are expected to recover in 2012, according to Japan-based automakers. Next year, the government will be introducing subsidies while it extends tax breaks as well. Toshiyuki Shiga, chairman of the Japan Automobile Manufacturers Association, said that in 2012, the demand for cars, trucks, and buses in Japan could increase by around 900,000 units after having had a record 14% decline drop this year.

Shiga added that auto sales are expected to increase at the same pace as in 2009 when the government initiated tax cuts and subsidies. The output of Japanese automakers was significantly affected by the March 11 earthquake in Japan and the flooding in Thailand. This prompted Toyota Motor Corp. to reduce its profit forecast by over 50%. The auto group has yet to give its forecast of the total sales for 2012.

It estimates that this year, the demand at its home market will fall to 4.25 million units from 4.95 million units in 2010. The trade ministry said that Japan's government will allot 300 billion yen ($3.8 billion) for the car incentives – a part of its fourth post- earthquake budget.

If the supplementary budget is approved, these subsidies will apply to environmentally friendly cars registered from the launch of the program. Shiga, also known as the chief operating officer at Nissan Motor Co, said that a 7-8% increase this year is expected from the industrywide vehicle sales in China. [source: BusinessWeek]

If you liked the article, share on:

Topics: japan, sales

Comments

Recommended

After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries