Jama sees Japanese demand down 9.8% in 2014
Gloomy clouds are gathering on the Japanese market. According to the Japan Automobile Manufacturers Association, auto demand in Japan is expected to drop 9.8% compared to the previous year for a total of about 4.85 million units.
The decline will be the first and sharpest drop in three years after auto demand remained nearly flat in 2013 with a 0.1% rise.
Jama motivates his pessimism with the recent government decision to raise the rate on consumer taxes that will become operational from April 1, when the new Japanese fiscal year will begin.
In detail, JAMA expects auto demand should collect a drop of 10.6% to 4.08 million units, while the trucks are projected to decrease by 5.4% to 759 thousand units. The total also includes 1.85 million mini-vehicles, 12.4% less.