New auto sales expected to fall in 2011 to lowest level in 34 years

Sales of new automobiles in Japan next year are likely to decrease 9.9% from this year to 4,465,000 units, marking the lowest level in 34 years, an industry body said Friday.
The Japan Automobile Manufacturers Association attributed the envisaged decrease to termination of the government’s subsidies for environmentally friendly vehicles in September as well as to the uncertain outlook of the nation’s economy.
The estimated figure is a drop of more than 40% from 1990, when the annual total sales of new cars peaked at 7,777,493 units. It is also the lowest level since 1977, when annual sales logged 4,194,249 units.
By category, sales of automobiles other than minivehicles are forecast to witness a drop of 13.3% to 2,808,000 units, while sales of minivehicles are likely to fall 3.6% to 1,657,000 units.
Toshiyuki Shiga, chairman of the association, said at a press conference Friday that for several months from January next year, sales are expected to see a year-on-year monthly drop of over 10%.
‘‘We hope to see a year-on-year monthly increase from around fall through the launch of new cars and sales promotions,’’ he said, while adding that global sales would remain strong due to recovery in the U.S. market and robust demand in China.