Japan auto sales down for 14 straight months in June
Reuters | July 2, 2007 - 5:50 am
TOKYO (Reuters) -- Sales of new cars, trucks and buses in Japan slid 9.4 percent in June for the 14th straight month of decline as demand remained weak across all segments and new models failed to inspire a rebound for many.
Vehicle sales totaled 462,166 units last month, with 660cc minivehicles, which get preferential tax treatment, falling 6.1 percent to 170,526 units.
Sales of all other vehicles retreated 11.2 percent to 291,640 units, extending the monthly drop to two years, the Japan Automobile Dealers Association said today.
Executives at carmakers have blamed weak domestic demand on a declining population and growing disinterest in owning cars among younger people. For the first six months of 2007, non-mini vehicle sales totaled 1,788,440 units, down 10.5 percent from the year before and the lowest level since
1977, an official at the industry group said.Minivehicles slipped 1.7 percent to 1,054,080 units, putting total auto sales for the first half at 2,842,520 units, down 7.4 percent.
Just three of the 13 brands -- Toyota Motor Corp.'s Lexus luxury line, Mitsubishi Motors Corp. and Suzuki Motor Corp. -- posted a rise in non-mini vehicles in June.
Nissan Motor Co., ranked second in the domestic market, fell for the 21st month despite the launch of the Dualis crossover at the end of May.
Fuji Heavy Industries Ltd.'s Subaru was the only brand with a longer losing streak, at 23 months. Despite the remodeling of the core Impreza model in early June, its sales fell 5.2 percent.
Top-ranked Toyota dropped for the 10th straight month with a 13 percent fall after it rolled out the Premio/Allion sedan in early June and the Voxy/Noah model late in the month.
Lexus sales jumped 58 percent thanks to the addition of the hybrid LS 600h series but with volumes small, combined sales for Toyota fell 12 percent in June.
Honda Motor Co.'s sales fell 8.2 percent.
Commercial vehicles were a major drag as sales of trucks subject to tougher emissions regulations declined, especially after a rise driven by replacement demand a year earlier.
Analysts expect a recovery as early as this month or in the second half of this business year through March at the latest.