News Article

2019 saw car sales in Japan fall, marred by a tax hike and natural disasters

The first decline in 3 years is due to slow demand after a string of natural disasters and the rise in taxes on usage. New car sales fell 1.5 per cent to 5.2 million vehicles in 2019.

The Japan Automobile Dealer Association reported on Monday that revenues excluding those of minicars fell 1.9 per cent to 3.28 million automobiles in the second straight year.

By brand, Nissan Motor Co. registered 13,8 cars down to a total of 367,514, allegedly affected by management confusion and cutbacks after the arrest in November 2018 of former Chairman Carlos Ghosn.

Toyota Motor Corp. rose by 2.7 per cent to 1.51 million vehicles while Honda’s revenues fell by 5.4 per cent to 357.242 automobiles.

The Japan Light Motor Vehicle and Motorcycle Association reported that sales of mini-vehicles that have engines no more than 660cc have decreased by 0.7 per cent to 1.9 million last year, the first decrease in three years.

“Several natural disasters, including typhoons, have harmed the vehicle market, which affected large areas of Japan in September and October,” said a spokesman for the association.

He said that the consumption tax increases by 10 per cent from 8 per cent on October 1 and that consumer sentiment was also dented.

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