By on October 1, 2010

TTAC (and just about everybody who comments on the Japanese market) saw it coming: After 14 months of government subsidies-induced growth, the Japanese car market took a corner. And now its nowhere but down.  Japanese sales dropped 4.1 percent  on the year to 308,663 units in September, the Japan Automobile Dealers Association told The Nikkei [sub]. This number does not include Kei cars, which will be published separately.

For the six months from April through September, car sales expanded 19.9 percent to 1.67 million.

And now, the abyss. The September number is harmless compared what is expected from October on out. There was a last mad dash on government money in the week of September, before the funds ran out and the program was stopped. The Nikkei [sub] reports that “dealership orders for Toyota vehicles, excluding Lexus models, were down by more than 40 percent as of Wednesday. The figure is expected to remain roughly the same with the inclusion of Thursday’s orders.”

High-end models and sport utility vehicles seem to suffer most.  Subcompacts are still going  strong, but orders for the  Prius hybrid seem to have slowed. We”ll get the results when October registrations are in.

Get the latest TTAC e-Newsletter!


One Comment on “Japan In September 2010: Sayonara, Growth...”

  • avatar

    Japan has never fully recovered from the burst of its “Bubble Economy” in the late 80s. And all their sales growth has been historically propped by the system that makes uneconomical to keep cars longer than 10 years.
    And those Kei-Jidosha (Light vehicles) with their toy-like 0.6 liter engines and paper-wall fragility rarely last this long, at the same time making for a substantial % of purchases.
    So it is really more surprising it did not come earlier.
    On a semi-off-topic, I am just waiting for Yen to loose some heft to again bring some 15-year old pleasure-mobile over here to Alberta. Thinking E34 M5 or E500…

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • SCE to AUX: “…a car that might have gotten you some looks back in the day is now the social equivalent of...
  • NMGOM: notapreppie – – – nap: “Hydrogen embrittlement is a significant issue. Molecular size...
  • Fred: Only marketing types care.
  • doublechili: Most of the time you can drive around with a level of attentiveness at say 9 out of 10 and be okay (and...
  • TwoBelugas: I owned a Charger for quite a few years before gifting it to a family member and still own a 300, the...

New Car Research

Get a Free Dealer Quote


  • Contributors

  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States
  • Moderators

  • Adam Tonge, United States
  • Corey Lewis, United States