(cache) Japan's new vehicle sales fall to 33-year low on higher gasoline prices - UPDATE

Thomson Financial News
Japan's new vehicle sales fall to 33-year low on higher gasoline prices - UPDATE
04.01.08, 3:42 AM ET

TOKYO (Thomson Financial) - Sales of new vehicles in Japan slumped to the lowest level in 33 years in the year ended March 31 as higher gasoline prices turned off prospective buyers, according to data released by an industry group on Tuesday.

It was the fifth straight year of decline.

Sales of new cars, trucks and buses, excluding minivehicles, fell 4.5 percent to 3.43 million

units, the lowest since the year to March 1975 when sales stood at 3.34 million, the Japan Automobile Dealers Association said.

Car sales dropped 2.1 percent to 2.96 million, down for the fourth straight year, while sales of buses declined 10.1 percent to 15,315 and truck sales dropped 17.7 percent to 446,669 units.

Sales of trucks and buses were down for the second consecutive year.

Sales fell despite aggressive efforts by Japanese automakers to launch new models.

Toyota Motor Corp. (nyse: TM - news - people ) launched 12 new models in the last 12 months, while Honda Motor Co. (nyse: HMC - news - people ) released its fully remodelled Fit compact car, one of its best-selling models, and the luxury sedan Inspire. Nissan Motor Co. (nasdaq: NSANY - news - people ) put five models including Skyline Coupe and its flagship GT-R sports car.

Separately, the Japan Minivehicle Association reported that domestic sales of new minivehicles fell 6.8 percent to 1.89 million units, the first drop in five years.

In March alone, new vehicle sales fell 3.3 percent to 471,755 vehicles, the first decline in three months.

Sales of minivehicles, with engine displacement of less than 660cc, were down 7.5 percent to 258,827 units last month, the 12th straight monthly fall.

Honda, Nissan sales up

In March, eight of the 12 Japanese automakers posted lower sales.

Sales of standard size cars by the country's largest automaker, Toyota, fell 5.9 percent to 199,170, the fourth straight monthly drop, while sales of its high-end Lexus models dropped 17.9 percent to 3,286.

Sales by second-ranked Honda, excluding sales of minivehicles, rose 8.5 percent to 59,938, the fifth straight monthly rise.

Sales by the third-largest, Nissan, increased 2.0 percent to 89,176 vehicles, the third straight monthly rise.

Sales by the fifth-largest automaker, Mitsubishi Motors (other-otc: MMTOF.PK - news - people ) Corp., fell 13.8 percent to 12,017 units, the second straight monthly fall.

Mazda (other-otc: MZDAF.PK - news - people ) Motor Corp.'s sales dipped 2.8 percent to 27,028 vehicles, the first fall in four months.

Sales by Fuji Heavy Industries Ltd., which makes Subaru cars, rose 6.0 percent to 14,476 vehicles, the third straight monthly rise.

Sales of standard-size vehicles by Suzuki Motor Corp. (other-otc: SZKMF.PK - news - people ) -- which now focuses on this segment rather than minivehicles where it used to be the leading maker -- rose 2.4 percent to 12,257.

Domestic sales of trucks continued to decline because of slowing demand for replacements to comply with tighter emission rules for metropolitan Tokyo which took effect in 2003.

Sales by Japan's largest truck maker, Isuzu Motors Ltd. (other-otc: ISUZY.PK - news - people ), fell 12.2 percent to 9,743.

Sales by Mitsubishi (other-otc: MSBHY.PK - news - people ) Fuso Truck and Bus Corp., which is owned by DaimlerChrysler AG (nyse: DCX - news - people )., fell 26.6 percent to 4,808.

Sales by Nissan Diesel Motor Co., controlled by AB Volvo (nasdaq: VOLV - news - people ), dropped 27.6 percent to 2,208.

Toyota subsidiary Hino Motors Ltd.'s sales fell 13.6 percent to 7,069.

In the minivehicle sector, sales at Daihatsu Motor Co. dipped 4.6 percent to 82,642, giving it the biggest market share of 33.1 percent, while sales at Suzuki Motor dropped 1.6 percent to 79,522, or 31.2 percent of the market.

($1 = 99.69 yen)

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