Sales Fall As Subsidies End, But Growth Still On The Cards

New vehicle sales in Japan, excluding mini vehicles, fell year-on-year (y-o-y) for the first time in 14 months in September after subsidies for the purchase of fuel-efficient vehicles ended. It was not an unexpected turn after the rush to claim incentives before the September 8 deadline prompted growth of over 46% in August. Moreover, with total sales for the nine months to September still 18.7% higher y-o-y, BMI's forecast for 11% growth by the end of the year still looks achievable, even factoring in slower sales for the remainder of the year.

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