February was the worst month for auto sales in Japan in 35 years. The drop in demand resulted in a 32.4 percent decrease in sales.
Slipping sales figures are not only the result of the grim economic outlook. The country’s auto market started shrinking steadily in 1990 due in part to the lack of enthusiasm that young people have for owning a car. Cars are less of a status symbol now than they were 20-30 years ago. Plus, Japan’s efficient train system eliminates the need to pay for costly fuel or parking.
Japan Automobile Dealers Association said that Japanese consumers bought only 218,212 vehicles for the month. The figure marks the seventh consecutive month of year-on-year declines.
Japanese automakers have implemented both staff and output reductions as the companies search for a light at the end of the tunnel. Both Toyota and Nissan are predicting annual net losses for the fiscal year through March.
Source: Yahoo Finance