Honda New Car Models Lead Gain in Japan Vehicle Sales

Honda Motor Co., Japan’s second- biggest carmaker, led a rise in domestic auto sales in July, after its new models spurred demand.

Sales of cars, trucks and buses rose 5.4 percent to 302,568 from a year earlier, the Japan Automobile Dealers Association said in a statement today. The total excludes minicars.

Toyota Motor Corp., Japan’s largest carmaker, and Honda are introducing new and revamped models to lure buyers to showrooms as higher gas prices and decade-high inflation squeeze consumer spending in Japan. Toyota brought out the Alphard and Vellfire minivans while Honda unveiled the Freed in May.

“The new models may provide a quick boost to sales,” said Takashi Aoki, who helps manage about 130 billion yen at Mizuho Asset Management Co. in Tokyo. “But the effect won’t last.”

Honda gained 29 percent to 40,449 units. Nissan reported a 5.9 percent sales increase to 50,098 vehicles, while Toyota’s increased 5.6 percent last month to 139,669.

There was one extra selling day last month compared with last year. Also, sales last year fell after an earthquake disrupted production.

Toyota, Honda, Mazda Motor Corp. and Fuji Heavy Industries Ltd. have all introduced minivans in the past three months to boost sales.

Still, auto sales, including minicars, will likely fall 1.2 percent this year for a fourth consecutive decline to about 5.32 million units, according to the Japan Automobile Manufacturers Association.

Spending, Inflation

Japan’s household spending has fallen for four straight months through June as inflation stays at a decade-high, boosted by soaring costs of food and energy.

Toyota fell 1.1 percent to 4,610 yen on the Tokyo Stock Exchange. Honda lost 0.3 percent to 3,480 yen, while Nissan fell 1.4 percent to 828 yen.

High gasoline prices have also deterred transport and tour companies from buying new trucks and buses. Truck sales fell 18 percent to 33,615 units in July. Bus sales dropped 15 percent to 1,228 units.

Sales of minicars, powered by engines no larger than 0.66 liters were little changed at 152,026 units last month, according to the Japan Mini Vehicles Association.

Daihatsu Motor Co., Japan’s largest minicar maker, increased sales 6.5 percent to 52,235. Suzuki Motor Corp., the country’s second-largest minicar maker, sold 48,785 units, up 1.5 percent.

Source : Bloomberg

Share This