October sales in Japan most likely will be a nightmare. Everybody thought they would drop after the government withdrew its subsidies last month. But it will be much uglier than expected.
A Honda senior executive told The Nikkei [sub] that domestic sales in October are down 35 percent from a year earlier so far. Nobody expects a miracle to happen in the last week of the month. Hiroshi Kobayashi, Honda’s head of domestic sales, expected something like 28 percent down.
Honda is Japan’s second largest automaker, and other brands will most likely share the misery. A big one. With export production being exported to other lands, and with domestic sales imploding, Japan is in for a big round of itai (pain).