Fast Market Research

New Market Study Published: Japan Autos Report Q3 2014

New Transportation research report from Business Monitor International is now available from Fast Market Research

 

Boston, MA -- (ReleaseWire) -- 06/06/2014 -- According to the Japan Automobile Manufacturers Association (JAMA), auto production in Japan rose 7.1% y-o-y in February 2014 (latest available), to 863,397 units, bringing output for the first two months of 2014 to 1,724,251 units, an increase of 10.7% year-on-year (y-o-y).

Auto sales too, rose 17.4% y-o-y in March 2014, to 783,389 units. This was the seventh consecutive month of y-o-y growth and the best monthly sales figure in at least two years. March's performance brought total vehicle sales in Q114 to 1,844,464 units, an increase of 20.7% y-o-y.

While undoubtedly spectacular, we do not expect these phenomenal growth rates sustained for the rest of the year. The hike in the national consumption tax, which took place on April 1 2014, resulted in consumers bringing forward their auto purchases to avoid paying higher taxes. Indeed, the surge in March sales was aided by last-minute consumer buying sprees.

View Full Report Details and Table of Contents

Another unfavourable development is the dim business outlook among corporates. The latest Bank of Japan Tankan survey for Q114 found that firms expect conditions to worsen more than they did during the previous consumption tax hike in 1997. This does not bode well for job creation or economic growth in subsequent quarters.

Against such a backdrop, it will not be surprising to see a precipitous decline in monthly vehicle sales in the near term as the market struggles to absorb the economic fallout from the sales tax increase. This will then negate the strong y-o-y sales growth in Q114. As such, we are happy to maintain our full-year total vehicle sales forecast of 5,418,000 units, an increase of merely 0.8%.

That said, we expect the mini vehicle (kei) segment to continue outperforming the market in 2014. As consumer prices begin to rise faster than wages on the back of 'Abenomics' (a set of economic policies which aim to generate inflation in the country), consumers will become more mindful of the rising cost of living and will seek to purchase fuel-efficient models...

The Japan Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s Japan Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Japan.

Key Benefits

- Benchmark BMI's independent automotives industry forecasts on Japan to test other views - a key input for successful budgetary and planning in the Japanese automotives market.
- Target business opportunities and risks in the Japanese automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Japan.
-

About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Transportation research reports at Fast Market Research

You may also be interested in these related reports:

- Mexico Autos Report Q3 2014
- Algeria Autos Report Q3 2014
- Indonesia Autos Report Q3 2014
- China Autos Report Q3 2014
- Vietnam Autos Report Q3 2014
- France Autos Report Q3 2014
- Pakistan Autos Report Q3 2014
- Argentina Autos Report Q3 2014
- Qatar Autos Report Q3 2014
- Germany Autos Report Q3 2014