Mitsubishi, Mazda Raise Prices in Japan

Mazda Motor Corp. and Mitsubishi Motors Corp. said they will raise the prices of some of their vehicles in Japan, despite sluggish domestic sales.

Mazda, the Japanese affiliate of Ford Motor Co., said it will raise the prices on four commercial models by 2.8% to 3% beginning Oct. 1, citing costs of raw materials. Mitsubishi will increase prices by 2.9%, on average, for three commercial vehicles that Mazda produces for the company.

Toyota Motor Corp. and Nissan Motor Co. have also raised prices. Honda Motor Co. is the only one that has resisted.

Japanese car makers raised prices in some overseas markets this year as higher prices of steel and other raw materials needed to build cars are squeezing their profitability. However, they had been cautious that Japanese customers wouldn’t easily accept price increases as Japanese companies usually raises domestic prices only when they redesign existing models.

They are also concerned that price increases could further reduce consumer appetite in the domestic market, where auto sales will likely fall to the lowest level in decades this year.

However, Mazda’s price increases will likely do little to help its bottom line, as annual sales of those models account for just 2% of its global auto sales. Mitsubishi didn’t provide annual sales figures for the three models affected.

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