April car sales likely to drop more than 50% from last year

The number of new vehicles sold in Japan in April, excluding minicars, is likely to drop more than 50 percent from the same month last year, according to carmakers' statistics.

The decline is expected because production by major carmakers was temporarily suspended due to the March 11 Great East Japan Earthquake.

As of April 27, sales were down 55 percent, the statistics showed.

It is certain the decline will be much larger than the 37 percent drop recorded in March.

Toyota Motor Corp. is suffering a 70 percent decline, while Honda Motor Co. and Nissan Motor Co. are marking declines of 50 percent and 40 percent, respectively.

The largest drop was 45.1 percent in May 1974, due to the 1973-74 oil crises.

The number of new vehicles sold in Japan in April could be less than the 136,074 recorded in January 1968, the lowest monthly figure recorded in Japan since statistics became available.

Major carmakers gradually resumed production in mid-April. However, their production rate is about half of normal levels. They are expected to return to pre-quake levels by the end of the year.

Car dealerships could face difficulties as the number of cars in showrooms is declining.

The number of vehicles (passenger cars, trucks and buses) produced in Japan in fiscal 2010 that ended in March 2011 stood at 8,993,975 units, falling below the 9 million mark for the second consecutive year, said the Japan Automobile Manufacturers Association on April 28.

Fiscal 2010 domestic auto production increased 1.5 percent from the previous year mainly thanks to strong demand overseas.

It was the first time in three years that annual domestic production figure increased. However, it did not reach 9 million as the earthquake applied the brakes on production, it said.

Domestic production in March stood at 404,039, down 57.3 percent from the same month last year. The year-on-year drop was the largest ever recorded.