Auto sales in Japan plunged to their lowest levels in 34 years during the fiscal first half of 2008, according to new figures from the Japan Automobile Dealers Association.

The body has suggested that sales in the six months through September (excluding minicars) decreased by 2.9 per cent to 1.54 million, the smallest figure recorded since 1974.

In addition, sales of cars, trucks and buses fell by 5.3 per cent on a year-on-year basis in September as unemployment in the country rose and the highest inflation levels for a decade curbed demand.

Yasuhiro Matsumoto, a Credit Analyst at Shinsei Securities in Tokyo, said: "Current economic conditions are getting worse, which doesn't help car sales.

"Carmakers are coming out with new minicars, the only models that seem to sell.''

Nissan were one company to particularly feel the pinch, posting a 5.3 per cent drop in sales during the fiscal first half as rising food and fuel prices also affected consumers' spending power.

The body has also suggested that domestic auto sales will fall by 1.2 per cent to around 5.32 million units this year - the fourth successive annual decline - while production by Japan's automakers slumped by 11 per cent in August.

However, September was a better month for Honda, the country's second-biggest automaker, which topped the passenger car ranking for the 11th consecutive month with its Fit compact.

Sales of the vehicle increased year-on-year by a huge 52 per cent to 16,350 units, keeping it comfortably ahead of Toyota's Corolla, which came in second with 12,176 sales.



Source:

Nissan Leads Drop as Japan Sales Fall to 34-Year Low (Update1) (01/10/08)
http://www.bloomberg.com/apps/news?pid=20601101&refer=Japan&sid=aejXWSttydAA

Honda Fit Compact Tops Japan's September Car Sales (Update1) (06/10/08)
http://www.bloomberg.com/apps/news?pid=20601101&sid=aWjUdhii_P7c&refer=japan