Japan Car Sales Expected to Decline in 2009

Japanese automobile sales are expected to drop in 2009. Japan Automobile Manufacture Association (JAMA) prospects Japanese automobile sales decreases to 4.68 million cars in 2009, which would become below 5 million cars for the first time in 31 years due to doldrums of corporate profits or slower growth of consumer spending. Japanese automobile export is slow due to sluggish rise of world demand or higher yen rate. Japanese integrated steel makers expect Japanese automobile output becomes less than 9 million cars through fiscal 2009 (Apr09-Mar10).

Mr. Satoshi Aoki, JAMA’s chairman said severe environment continues for automobile industry this year due to protracted financial crisis, decline in the stock market, exchange fluctuations or the slowdown in the spending, at the JAMA’s New Year party on Monday.

Mr. Katsuaki Watanabe, the president of Toyota Motor said the bottom isn’t in sight. Mr. Toshiyuki Shiga, COO of Nissan Motor said the firm will operate sharply. Mr. Shiga and Mr. Watanabe said it is important that automakers develop attractive cars. They will develop environment-responsive car such as hybrid car or battery car. It is expected they advance technology cooperation with material makers.