Japan logs double-digit plunge in new vehicle sales in first half of year

TOKYO, July 2 (Xinhua) -- New vehicles in Japan in the first half of 2024 declined by 13.2 percent from a year ago to about 2.13 million units, the first time in two years that sales have fallen below the previous year's figures, industry data showed on Tuesday.

In the first six months, registered vehicle sales dropped by 10.7 percent year on year to 1,397,651 units, while light vehicle sales plunged by 17.7 percent to 729,839 units, according to preliminary figures released by the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.

In June alone, new car sales saw a downward trend for the sixth consecutive month by decreasing 4.9 percent from a year ago to 373,599 units, with the sales of registered vehicles and light vehicles marking the sixth and seventh straight months of negative growth, respectively.

Among several factors contributing to the sales slump, industry insiders here pointed out that the discovery of data testing deficiencies led to a halt in the production and shipping of certain car models, including Toyota Yaris Cross and Mazda Roadster RF, in June, which exacerbated the decline in June from a 4.4-percent decrease in May.

Despite steady demand for new cars, the continued suspension of production, stagnant wages and rising prices are still affecting consumer spending, local analysts said, suggesting that the new car market will continue to face difficulties in the coming months.