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Japan’s new car sales in 2019 fall on natural disasters, tax hike

This file photo shows a production line of Lexus SUV UX at a Toyota Motor Corp. plant in Fukuoka Prefecture. (Kyodo)


TOKYO (Kyodo) — New car sales in Japan fell 1.5 percent to 5,195,216 units in 2019 from the previous year, the first decline in three years, on sluggish demand following a series of natural disasters and a consumption tax hike, industry bodies said Monday.


Sales excluding those of minicars dropped 1.9 percent for the second straight year to 3,284,870 units, the Japan Automobile Dealers Association said.


By brand, Nissan Motor Co. logged a 13.8 decline to 367,514 cars, apparently affected by management confusion and cost-cutting following the arrest of its former Chairman Carlos Ghosn in November 2018.


Toyota Motor Corp. marked a 2.7 percent increase to 1,510,741 units, while sales of Honda Motor Co. decreased 5.4 percent to 357,242 cars.


Sales of minivehicles, which have engines no larger than 660 cc, fell 0.7 percent to 1,910,346 units last year, the first drop in three years, the Japan Light Motor Vehicle and Motorcycle Association said.


“A series of natural disasters including typhoons (hitting wide areas of Japan in September and October) had a negative impact on the auto market,” said an association spokesman.


He added the consumption tax increase to 10 percent from 8 percent starting Oct. 1 also dented consumer sentiment.

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