Domestic Auto Sales Drop for Japanese Cars to 25 – Year Low

Posted by Bill Belew on July 1st, 2008 in Japan | No Comments

Japan is selling less and less of its own cars. New car sales declined 2% in the first half of this year for the third straight year for domestic sales of Japan's own.

Two reasons are given –

1. longer replacement demand

2. gas-prices out the roof – Japanese pay nearly $6.50/gallon.

Even mini-car sales are falling. For the second year in a row sales were down, this year 3.8%. 

Car makers are considering hiking prices amid sluggish demand. 

So, when you sell less, do you charge more to make up for it, or sell less with a smaller profit margin and hope you sell more overall?

I am of the seconf mindset. How about you?

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  1. says

    July 2, 2008

    I agree with you. In western countries too, purchasing power has declined sharply. If people have no money to spare, higher prices won’t help – especially with such an excellent railroad network and such congested and boring roads in Japan.