New vehicle sales in Japan increased by just over 1% to 402,310 units in October 2024 from 397,672 units a year earlier, according to registration data released by the Japan Automobile Manufacturers Association (JAMA).
The domestic market has begun to stabilise after a prolonged period of production stoppages at Toyota Motor Corporation, following the safety-test rigging scandal at its Daihatsu subsidiary at the end of last year. The group was ordered to halt production for several months of a number of key models which are also shared with other affiliated brands, including Toyota, Mazda and Subaru.
The latest macroeconomic data shows that the Japanese economy grew by 2.9% year-on-year in the second quarter, after shrinking by 2.3% in the first quarter, driven by a recovery in private consumption – including consumer spending and business activity. Growth is expected to have slowed to 1.6% in the third quarter, following the strong rebound in the second quarter.
The government under newly elected Prime Minister Ishiba Shigeru is expected to introduce new policies aimed at driving up domestic economic growth, including efforts to lift wage growth and household incomes, revitalise regional economies, reskill the country’s workforce and encourage corporate investment.
In the first ten months of 2024 the vehicle market declined by almost 8% to 3,702,179 units after growing by 15% to 4,005,158 in the same period of last year, with sales of passenger cars declining by 7% to 3,114,139 units while truck sales dropped by over 11% to 579,366 units. Sales of medium and large buses and coaches continued to grow strongly in this period, by 29% to 8,674 units.
Toyota’s sales fell by 15% to 1,135,248 units in this period, while Daihatsu’s sales plunged by 41% to 292,971 units and Mazda’s sales were down by 23% at 118,402 units. Automakers not affected by the recent Toyota Group scandals fared much better, including Suzuki with an 11% increase to 608,581 units and Honda with 568,668 units (+18%), while Nissan’s sales were just slightly lower at 405,926 units.
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By GlobalData
Overseas brands account for around 5% of total vehicle sales in Japan, led by German automakers including Mercedes-Benz, BMW-Mini, Audi and Volkswagen. China’s leading electric vehicle (EV) manufacturer BYD Auto strengthened its Japanese line-up earlier this year, as it looks to establish a strong earlier presence in the country’s emerging zero-emissions vehicle segment.
