Japan's new auto sales plunge to 34-year low in 2008

TOKYO, Jan. 5 Kyodo - Domestic sales of new vehicles, excluding minivehicles, fell to a 34-year low
of 3,212,342 units in 2008 -- nearly half of the peak level in 1990 -- as
worsening economic conditions depressed consumer demand, an industry body said
Monday.
The sales figure -- the lowest recorded since 1974 in the aftermath of the
first oil shock -- represents a 6.5 percent year-on-year decline and the fifth
consecutive yearly fall, the Japan Automobile Dealers Association said.
The figure for 2008 was down about 46 percent from the peak in 1990 when
domestic vehicle sales reached about 5.98 million units.
''Amid the sort of economic crisis that occurs only once in a century, consumer
sentiment cooled rapidly and that hit auto sales,'' said Takeshi Fushimi, the
association's director. ''This is worse than we had expected.''
Fushimi said wealthy people continued to postpone purchasing cars as the value
of their stock and foreign currency investments tumbled due to last year's
financial market meltdown, while more young people lost interest in buying cars
amid stagnant wage growth.
The decline in domestic vehicle sales became steeper toward the end of 2008,
with sales in December alone diving 22.3 percent from a year earlier to 183,549
units.
It was the first time that domestic sales of new vehicles over 660 cc in
December had fallen below the 200,000 line since the body started compiling
data in 1968, JADA said.
In 2008, sales of minivehicles of up to 660 cc fell 2.6 percent to 1,869,893
units for the second consecutive year of declines, according to the Japan Mini
Vehicles Association.
Combined sales of minivehicles and bigger vehicles fell 5.1 percent to
5,082,235 units, the lowest since 1980.
For 2009, the minivehicle association said it expects sales of cars of up to
660 cc to fall 1.6 percent from 2008 to 1.84 million units.
In December alone, minivehicle sales dropped 6.7 percent to 122,770 units, it
added.
Amid plunging sales both at home and abroad, a number of Japanese carmakers
lowered their earnings projections for fiscal 2008 ending March 2009, cut
output and jobs, and froze a range of capital investment plans.
Last month, Toyota Motor Corp., Japan's largest automaker, said it is expecting
its first group operating loss for fiscal 2008, and Honda Motor Co., the
country's second-largest automaker, announced its third downward revision to
its group earnings forecast for fiscal 2008 and that it plans to withdraw from
Formula One motor sports operations.
Looking at sales by brand of cars with engines of more than 660 cc, they fell
almost across the board, with Toyota cars dropping 7 percent and Nissan
vehicles seeing a 5.8 percent decline.
Daihatsu brand vehicles fell by a sharp 37.5 percent, while Isuzu brand cars
also booked a 14.4 percent drop.
In contrast, Honda cars rose 6.4 percent thanks to healthy sales of new models
and Subaru brand vehicles by Fuji Heavy Industries Ltd. booked a marginal 0.3
percent rise, and did Suzuki brand cars a 0.4 percent rise.
Sales of foreign brand cars were down 16.3 percent.
By type of car, excluding minivehicles, passenger car sales for 2008 fell 5.2
percent to 2,800,664 units.
Truck sales dropped 14.8 percent to 396,345 units, while bus sales slipped 1.8
percent to 15,333 units.
==Kyodo
2009-01-05 22:09:09