Japan automobile manufacturers are struggling with reduced vehicle sales owing to slump in Japanese economy and new sales tax imposed by government.
Japan's domestic automobile sale went down for a 22nd month direct subsequent to languishing domestic expenditure in world's second largest economy. Toyota Motor Corp. and Nissan Motor Co. sped the decline. Sales of trucks, cars, and buses not including minicars cut down by 10 percent that is 217,911 motor vehicle in April from last year, as said by Japan Automobile Dealers Association. From base year 1978, as considered by dealer group to track sales, April was second worst from 1978. Toyota's sales decreased by 12 percent, whereas Nissan's plunged to 11 percent, as per the news published on Bloomberg.
The Japanese automobile manufacturer experienced huge increase in sales as much as double digit in current months and feeling was that this trend would continue. The sale increased by 11.7 percent in March however April became nightmare for automakers in terms of plunging sales in Japan.
The sale of large automobile has undergone a quick decline due to reduction in demand. Cars, offered by automobile makers, are not able to draw customers and past month no other new models have been introduced in market so as to control the declining sales and attract customers in market.
Industry experts consider that this month with low sales is the forerunner of bad time that is imminent for the entire automobile industry in another half of year with economic vagueness, elevated customer liability, the accommodation deceleration and increasing gasoline charges contributing to leaner sale in automobile market.
U.S. light car sale for every Japanese automobile manufacturer decreased 7.6 percent previous month to 1.34 million from approximately 1.45 million last year, according to Autodata Corp. Three giant automobile offered in Japan do not contest with array of models, technique and superior quality presented by European complement.
As per the research analyst at RNCOS, “Automobile industry in Japan, no doubts, is going through a recession, as evident from statistics that Japanese economy slumped from its growth rate of 3.6 percent in 1996. Moreover, introduction of new sales tax has also affected the automobile sale and all the principal automobile producer of Japan showed droop in sale.”
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