Japan witnessed rise in auto sales after a long gap of 13 months in August 2009 with the restoration of customer confidence and government support to the industry.
After a 13 months long rally of slowdown, the posted an increase of 2.3% in sales during August 2009 (except 660 cc mini vehicles) over the previous year. The auto industry sold 198,265 vehicles in August 2009, as reported by
REUTERS.
Among the three leading car manufacturers in Japan, Toyota’s sales surged 9.0% in August except its upscale Lexus brand. The sales of Lexus brand surged 46.9% in the same month. Honda sales also scaled up 13.4% whereas Nissan’s sales declined 1.4% in August. In July 2009, Nissan posted a decline of 1.8% in sales.
The prime reason for upsurge in auto sales during August was the government’s incentives and measures that led to high demand for green cars. The outgoing Japanese government in the leadership of Taro Aso (Prime Minister) gave thrust to the auto industry by felicitating citizens to access subsidies of thousand dollars for buying cars along with tax exemptions on the trading of existing electric and hybrid vehicles.
As the Democratic Party of Japan (DPJ) is almost prepare to take rein of the country’s administration from long-ruling conservatives, the continuity of incentives program to support automobile industry has come under threat and a lot of suspicions have surrounded it.
According to the market experts, Japan has joined the line of countries who have scored high on bringing their automobile industries back on track after getting severe blow from recession. Some executive have expressed firm belief on the sustainability of Japan’s automobile industry growth as it has posted high sales last month.
Toyota has said that it is going to recruit 800 temporary staff in October 2009 in the face of high demand for cars.
The recruitment process came to a complete halt in the Japanese automobile industry in July 2008 but the recovery has ended this downturn period, leading to the resumption of recruitment by companies.
As per a Research Analyst at
RNCOS, “Weak consumer confidence and low spending sucked auto sales in Japan but the government’s initiatives of giving tax breaks and subsidies have provided some cushion to the industry. The launch of new models such as Lexus and Prius helped to build momentum that might keep sales solid after the expiration of government’s steps.”
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