Japan's vehicle sales fell last year to the lowest in 35 years, led by Nissan Motor Co and Toyota Motor Corp, as declining wages and a shrinking population cut demand for automobiles.
Sales of cars, trucks and buses excluding minicars dropped 7.6 percent to 3.4 million from 3.7 million in 2006, the Japan Automobile Dealers Association said in a release yesterday. Toyota, the country's largest automaker, sold 1.55 million vehicles, down 6.5 percent.
Vehicle sales excluding minicars fell every month last year except in October and November, as Japan's population dropped and decreasing wages discouraged consumers from buying cars. New or redesigned models such as Toyota's Mark X Zio minivan and Honda Motor Co's Fit hatchback failed to halt the slump.
"Sales spikes from new models don't last as long as they used to," said Yoko Yoshimura, a Tokyo-based auto analyst at Global Insight Inc. "People's motivation to buy cars is becoming thinner and thinner."
Wages in Japan fell in 10 of the first 11 months of last year, and winter bonuses, which typically account for 10 percent of annual income, declined 9.7 percent.
The country's inflation rose at the fastest pace in more than nine years in November on surging energy costs. Crude oil for February delivery rose to US$100.09 a barrel in New York last week.
Japan is the world's third-largest vehicle market, lagging behind the US and China. Vehicle sales in the US declined 2.5 percent to 16.1 million, a nine-year low.
Toyota's sales last month, excluding its Lexus luxury brand, fell 14 percent to 91,380 vehicles. The Toyota City-based carmaker rolled out 11 new models last year, including the Lexus IS F sports car.
Honda, Japan's second-largest carmaker, released two new models, including the redesigned Fit, its best-selling domestic model, on Oct. 26. The Tokyo-based company's sales fell 4.7 percent to 398,080 last year and gained 6.7 percent to 36,817 last month.
Sales at Nissan, the country's third-biggest carmaker, dropped 9.7 percent to 570,838 vehicles last year and declined 2.7 percent to 34,426 last month. The company introduced four new or redesigned models last year, including the X-Trail sport- utility vehicle.
Toyota fell 1.2 percent to close at ¥5,710 (US$52.24) on the Tokyo Stock Exchange. Nissan shares declined 1.7 percent to ¥1,098, and Honda shares dropped 0.8 percent to ¥3,570.
Sales of minicars, powered by engines no larger than 0.66l liters, fell 5.1 percent last year to 1.92 million units, the third highest annual tally, from a record 2.02 million a year earlier, the Japan Mini Vehicles Association said.
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