Japanese Car Market Stabilizes – October Sees Slight Growth

The Japanese automotive market shows moderate growth in October, as evidenced by the latest registration data from the Japan Automobile Manufacturers Association (JAMA). After years of production stoppages at Toyota Motor Corporation had burdened the industry, vehicle sales recovered to 402,310 units, an increase of just over 1% compared to the same month last year. The massive production disruptions stemmed from a safety inspection scandal at Toyota's subsidiary Daihatsu, which forced the company to halt the manufacturing of several key models for several months. These models are also brand-relevant for other partners, including Mazda and Subaru. From a macroeconomic perspective, Japan experienced impressive growth of 2.9% in the second quarter after a decline of 2.3% in the first quarter, driven by a recovery in private consumption. However, a slowdown to 1.6% is expected for the third quarter. Meanwhile, the government under Prime Minister Ishiba Shigeru plans to further stimulate the domestic economy through increased wages and targeted investments. Despite growth in October, the Japanese vehicle market recorded a decline of nearly 8% in the first ten months of 2024. Toyota, Daihatsu, and Mazda were particularly hard hit in terms of sales. However, not all brands suffered equally: Suzuki and Honda even achieved significant increases in sales volume, while Nissan only had to endure a slight decline. The Japanese market share of foreign brands is about 5%, with German car manufacturers such as Mercedes-Benz and Volkswagen taking the lead. The Chinese electric vehicle pioneer BYD Auto also strengthened its presence, aiming to establish a foothold in Japan's emerging market for zero-emission vehicles.