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Japan's car sales plummet

Mar 02 2009 14:37

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Tokyo - Sales of new cars in Japan plunged last month, industry figures showed on onday, underlining the sector's deepening woes as the economic downturn causes a slump in consumer spending.

The decline, for a seventh straight month, comes as Asia's biggest economy endures its worst recession in decades.

Vehicle sales dropped 32.4% in February from a year earlier to 218 212 vehicles, the Japan Automobile Dealers Association reported.

Sales of mini-vehicles dropped 9.8% to 162 370 vehicles, a separate association said.

Japan's motor manufacturers have suffered a dramatic reversal in fortunes in recent months as demand falls sharply in recession-hit markets in the United States, Europe and elsewhere.

Fewer Japanese are buying cars as consumer spending weakens following a wave of job cuts by manufacturers, including by the automakers themselves.

Mini-cars and trucks, which have an engine size of 660cc or less, have become popular among Japan's cost-conscious motorists in recent years.

- AFP

 
 
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