Japan’s Car Demand Plunges 16%

Sales of passenger vehicles (excluding minivehicles) in Japan plummeted to 249,900 units last month from 295,700 units in July 2012, according to the Japan Automobile Dealers Assn.

Volume plummeted 47% to 24,000 vehicles at Honda. Other brands posting declines included Toyota (-14% to 142,900 vehicles) and Nissan (-6% to 42,100).

July deliveries of minivehicles, which are powered by engines displacing 660 cc or less, rose 2% to 187,800 units, the Japan Mini Vehicles Assn. reports. Sales of standard size trucks increased 4% to 33,500 units and demand for buses jumped 14% to 900 units, JADA says.

Demand for all passenger and commercial vehicles in Japan dropped 8% both last month and in the January-June period to 472,100 units and 2.71 million units, respectively.

Total vehicle deliveries are now expected to reach about 5 million units this year 260,000 more than previously forecast, according to Japanese newspaper The Nikkei, which cites automakers and dealers. Motor vehicle sales totaled 5.37 million units in 2012.