Japan’s October auto sales fell to its lowest level for the month in 42 years as the government subsidy program ended. The demand for Toyota Motor Corp. and Honda Motor Co. vehicles has dropped suddenly.
In a statement, the Japan Automobile Dealers Association said that registrations for October were the weakest since 1968 as sales of cars, trucks and buses, excluding minicars, decreased by 27% from the previous year to 193,258 vehicles.
Toyota had a 24% decline to 101,518 units, excluding Lexus-brand cars. The association said that with the ending of a government subsidy for fuel- efficient cars last September 8, industrywide car sales in Japan had dropped by 23% in the six months through March 31.
Michiro Saito, head of general affairs and statistics at the association, noted that the biggest declines are from automakers that were selling many models that were eligible for the government subsidies.
He said that carmakers are concerned that consumers’ apprehensions over the nation’s economy may result to the recovery taking slower than expected. [via autonews - sub. required]