Japan’s Auto Demand Soared 28% Last Year

Sales of cars, minicars, trucks and buses in Japan surged to 5.37 million units last year from 4.21 million units in 2011, according to industry groups.

The trade associations note that volume benefited from a rebound from 2011 when Japan's earthquake and tsunami disrupted auto production and sales.

Last year, the country's sales of commercial vehicles and standard-size passenger cars climbed 26% to 3.39 million units, the Japan Automobile Dealers Assn. reports. All segments posted big gains, including passenger cars (+26% to 3 million units), trucks (+24% to 363,700 units) and buses (+12% to 11,900 units).

Japanese demand for minivehicles, which are powered by engines displacing 660 cc or less, soared 30% year over year to 1.98 million units, according to the Japan Mini Vehicles Assn.

But the country's auto sales ended 2012 on a weak note. Demand for minivehicles fell 3% to 124,100 units last month.

December's standard-vehicle volume in Japan dropped 3% to 214,400 units, marking the fourth straight month of year-over-year declines. JADA blames the sales slowdown on the expiration in September of government incentives on purchases of fuel-efficient cars.

Japanese auto industry groups have not yet issued forecasts for 2013 sales because of uncertainties about vehicle taxes and government incentives.