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Japan?s Auto Industry Grew 6.9% in April 2008
Jun 06, 2008

The Japan automobile industry experienced 6.9% growth rate in sales of new vehicles and the number reached 232,993 Units.

According to the Japan Automobile Dealers’ Association (JADA), Japan’s automobile industry experienced 6.9% growth in sales of new automobiles (except mini-vehicles with engine capacity below 660 cubic centimeters) last year to reach 232,993 Units, as reported by
Forbes.

JADA also provided sales figures for April month in which the number of sold units reached 232,993 as compared to 217,911 in the corresponding month in 2007. It also revealed that passenger cars sales touched 201,155 Units with growth rate of 9.4%, and small car sales stood at 110,452 Units with growth of 1.8%.

The Japan’s auto industry received impetus from industry’s attempts to transform the lethargic sale figures, due to an inactive response of ageing population in the first quarter of 2008 towards buying new cars, into dynamic figures. Besides these efforts, the industry has also got sales momentum from the major players who offered discounts on their brands and launched new models. Consequently, the new generation people got attracted towards these offers, thus pushing the sales up.

Apart from all these reasons, the growth in new vehicle sales in Japan was driven by increasing purchasing capacity of people, boost in the auto component industry, flexibility in government’s regulations and rise in diffusion of car ownership in the country. All these factors collectively played the important role in increasing the sale of new vehicles during April 2008.

Moreover, the Japanese government reduced the surcharge on gasoline, which prompted consumers to buy new vehicles. Owing to decrease in gasoline surcharge, consumers increasingly bought the new vehicles in April 2008 as compared to the sales recorded in April 2007.

According to a research analyst at
RNCOS, “The good time for the Japan’s automobile industry will remain for some more time, if consumers get the favorable conditions. The automobile manufacturers should also play an important role in maintaining the current growth rate by introducing new schemes that primarily focus on giving easy installment facilities to consumers so that they buy vehicles without any financial pressure.”

Related Market Research Reports:
Asian Automotive Industry Outlook (2007-2011)
Asian Automotive Industry (2007)