By on November 1, 2010

As expected and predicted, October new car sales in Japan were a disaster. Japan’s domestic sales of new cars, trucks and buses declined 26.7 percent from a year earlier, down for the second straight month. Japan is going through a big withdrawal after the Japanese government withdrew incentives.

Only 193,258 vehicles changed hands in October, the Japan Automobile Dealers Association said today to The Nikkei [sub].  The figures do not include mini vehicles, which are reported separately.

Japan is caught in a double whammy. Its domestic sales will suffer for a while. Other that the cash for clunkers programs, the Japanese program had a strong pull-forward effect. Also, the Japanese auto industry suffers from a strong yen, which makes cars exported from Japan more expensive or less profitable. One dollar bought only 80.4 yen today.

As far as individual companies go:

Toyota down 24.2 percent.
Honda down 29.9 percent.
Nissan lost 30.6 percent.

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4 Comments on “Waaah: Domestic Auto Sales Down 26.7 Percent in Japan...”


  • avatar
    OldandSlow

    Correct me if I am wrong, but I suspect that one of Japan’s colossus neighbors has been buying yen with their surplus dollars – which makes Tokyo’s attempt to manipulate the Yen’s exchange rate versus the USD ineffective.
     
    The JDM for cars may rebound back to normal within a year or two,  but that won’t help when they repatriate their North American earnings back to the home isles – especially if the Yen starts trading in the 70’s versus the Dollar range.

    Let me add that exchange rates are volatile and with one tempest in a tea pot panic concerning Asia, the Yen could lose ground against the dollar tomorrow.

  • avatar
    John R

    naku?

  • avatar
    Dimwit

    The demographics are working against them. Japan is aging fast. The JDM isn’t going to expand anytime soon … if ever. This is going to be the biggest hangover the car companies have ever seen and the export market becomes absolutely vital.

    I wonder how long it will be before the titans start buying up the competition abroad while they still have the cash.

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