Daihatsu Predicts Its Sales in Japan will Fall 10%

Daihatsu Motor Co. expects Japan's higher consumption tax will cut its full-year domestic sales 10% to about 600,000 minivehicles, The Nikkei reports.

Japan's minivehicle market rose to a record 2.1 million units last year. But Daihatsu expects the market to shrink to 1.9 million vehicles in 2014.

The company anticipates a sales surge until April, when Japan's general sales tax will rise from 5% to 8%. Prime Minister Shinzo Abe says he intends to increase the tax to 10% in 2015.

The Japan Automobile Manufacturers Assn. complains that the country's consumers are already burdened by multiple taxes that more than double the cost of a 1.9 million-yen ($18,000) car in the first year of ownership.