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392932
Wed, 01/06/2016 - 06:05
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Japan New Auto Sales Drop for 1st Time in 4 Years in 2015

Tokyo, Jan. 5 (Jiji Press)--New automobile sales in Japan in 2015 fell 9.3 pct from the previous year to 5,046,511 units, posting the first drop in four years, industry data showed Tuesday. Although new vehicle sales topped 5 million units for the fourth straight year, they dropped year on year due to a fall in demand after the consumption tax rise from 5 pct to 8 pct in April 2014 and a minivehicle tax increase in April 2015, industry officials said. Excluding minivehicles, new automobile sales declined 4.2 pct to 3,150,310 units, the first fall in two years, according to the Japan Automobile Dealers Association. "The situation remains severe," an association official said. "(The industry) could not recover from the impact of the consumption tax hike." In 2016, the industry is expected to enjoy some underpinnings from a demand increase ahead of the next consumption tax rise, slated for April 2017. But industry people are not optimistic about auto sales this year. Last year, sales of minivehicles plunged 16.6 pct to 1,896,201 units, down for the first time in four years, the Japan Light Motor Vehicle and Motorcycle Association said. The drop, which was the steepest since the 17.9 pct fall marked in 1975, came after minivehicle sales hit a record high in 2014 amid a fierce battle for top market share between Suzuki Motor Corp. <7269> and Daihatsu Motor Co. <7262>. Minivehicle sales accounted for 37.6 pct of the total new auto sales in 2015 in the country, down from a record 40.9 pct in 2014. The proportion of minivehicles fell for the first time in five years. In the minivehicle market, Daihatsu took top spot for the first time in two years with a share of 32.1 pct by dethroning Suzuki, whose share stood at 29.5 pct. In December alone, overall new auto sales dived 14.5 pct from a year before to 369,460 units, dropping for 12 months in a row. END

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