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Domestic Auto Sales Drop for Japanese Cars to 25 - Year Low | Rising Sun of Nihon
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Domestic Auto Sales Drop for Japanese Cars to 25 - Year Low

Submitted by Bill Belew on Tuesday, 1 July 2008No Comment

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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  • Anonymous said:

    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.

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