JAPAN RECORDS DOUBLE-DIGIT DROP IN NEW VEHICLE SALES IN FIRST HALF OF YEAR

TOKYO, July 2 (Bernama-Xinhua) -- New vehicle sales in Japan declined by 13.2 per cent in the first half of 2024 compared to the previous year, totalling approximately 2.13 million units, marking the first drop in two years, according to industry data reported by Xinhua on Tuesday.

In the first six months, registered vehicle sales fell by 10.7 per cent year-on-year to 1,397,651 units, while light vehicle sales plunged by 17.7 per cent to 729,839 units, based on preliminary figures from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.

In June alone, new car sales continued their downward trend for the sixth consecutive month, decreasing by 4.9 per cent from the previous year to 373,599 units. Both registered vehicles and light vehicles saw their sixth and seventh straight months of negative growth, respectively.

Industry insiders attribute the sales slump to several factors, including the discovery of data testing deficiencies, which led to a halt in the production and shipping of certain models, such as the Toyota Yaris Cross and Mazda Roadster RF, in June. This exacerbated the decline in June, following a 4.4 per cent decrease in May.

Despite steady demand for new cars, the continued suspension of production, stagnant wages, and rising prices are still affecting consumer spending, local analysts said, suggesting that the new car market will continue to face difficulties in the coming months.

--BERNAMA-XINHUA