Japan's passenger car sales may rise for the first time in two years next fiscal year as new models by Nissan Motor Co and Daihatsu Motor Co spur demand in the world's third-largest auto market.
Sales of passenger cars may rise 0.4 percent to 4.43 million vehicles in the business year starting April 1, led by a 1.3 percent gain in minicars, the Japan Automobile Manufacturers Association (JAMA) said in a release yesterday. Overall vehicle sales will fall 0.6 percent to their lowest in 27 years as demand for trucks declines 5.3 percent, the group known as JAMA forecast.
New or redesigned minicar models by Nissan and Daihatsu may help attract buyers in Japan as they have lower tax and insurance rates. Inflation and a shrinking population are damping demand. Japan's consumer confidence dropped to the lowest in five years last month amid rising food and oil prices.
"We expect little growth from Japan," said Hitoshi Yamamoto, who manages the equivalent of $5.5 billion in Japanese equities as chief executive officer of Fortis Asset Management in Tokyo. "Consumers are staying away from buying expensive goods, as fuel costs and food prices are going up."
Nissan, which doesn't develop its own minicars, last month agreed to expand cooperation in mini vehicles with Mitsubishi Motors Corp. Mitsubishi Motors will build about 4,000 Pajero Minis a year for Nissan to be sold under the Nissan brand, they said.
Daihatsu, the country's biggest minicar maker, introduced the redesigned Tanto minicar, aiming to sell 8,000 units a month.
The minicar starts at 1.08 million yen ($10,900), compared with a starting price of 1.2 million yen for Honda Motor Co's Fit compact, the country's bestselling model. Suzuki Motor Corp also introduced a new Palette minicar with a monthly sales target of 6,000 units.
Industrywide sales of minicars, cars, trucks and buses next fiscal year may total 5.31 million vehicles, the lowest level since 1981, from estimated 5.34 million this business year, JAMA said.
Demand for trucks will fall 5.3 percent to 866,000 vehicles, according to JAMA forecast.
Source: China Daily/Agencies
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