Mini vehicle share rises to 35 percent of all new vehicle sales in Japan in FY2010

Percentage of mini vehicles of all new vehicles sold in Japan in the year ended in March 2011 increased 0.6 percentage points from the previous year to 35.4 percent. The figure was the fourth highest in the last 10 years, following the largest, 38.5 percent in FY2008, 36.1 percent in FY2006, and the 35.6 percent in FY2007. The ratio was rather low in the summer time, when new car demand was buoyed by the eco car incentive schemes, which brought smaller benefits to mini vehicles as compared with those offered to non-mini vehicles. Mini vehicle sales accounted for 31.5 percent in July 2010, and 31.6 percent in August 2010. The trend, however, turned around after October with the completion of the subsidy programs. In December 2010, when sales of non-mini vehicles dropped significantly, mini vehicles made up as much as 38.7 percent of all passenger vehicles sales. Although mini vehicles were expected to have a large presence in March 2011 as well, the percentage decreased by 0.8 percentage points from the previous month to 36.2 percent due to the impact of the March 11 disaster. Automakers are starting production on a limited scale in April, but it is inevitable that deliveries of both mini vehicles and non-mini vehicles will be delayed for a while, with new car supply projected to remain around 50 percent of the normal volume. Japanese automakers will have to brace for a tough domestic business environment in the meantime until they can resume full scale production. (From an article in the Nikkan Jidosha Shimbun on April 6, 2011)