Japan’s Domestic Car Sales Drop 30% Hit 34 Year Low Affecting 8% of Japan’s Workforce

New-car sales are likely to be the lowest since 1974 in Japan. Last month, some 159,000 autos were sold, 33% fewer than in the same period last year.

Sales dropped 5% on the year in September.

Sales were off 13% last month.

Even if December is the same as last year full-year sales are expected to be at a 34-year low.

In Japan, sales of large models and imports have dropped strikingly. Affluent individuals hit hard by stock market declines have reined in their spending.

However, even fuel-efficient minivehicles were down 25% in November and full-year sales are expected to be the lowest total in 28 years.

Domestic car output was down 6.8% last month in unit terms.

Production cuts are expected to have a major impact on employment with some 8% of the Japanese labor force working in automaking or related industries.

And, it’s only going to get worse before it gets better.