Car Production in Japan Drops Again

Domestic car production in Japan declined 3% to 800,000 vehicles in September, marking the third consecutive month of year-on-year shrinkage, The Nikkei reports.

The slump began in July after carmakers met a flood of orders placed before April 1, when Japan hiked its consumption tax for the first time in 17 years. Domestic sales subsequently dropped 3% to 2.26 million units in April-September.

Exports also have fallen 4% this year to 2.06 million vehicles. One reason: Japan's carmakers continue to shift production overseas, where output in the January-June rose nearly 7%.