August 22, 2008

Japan automobile body sees steady vehicle demand in 2008-9

Japan Automobile Manufacturers Association projected the country's demand for passenger cars and commercial vehicles to hold steady in fiscal year 2008-2009.

The association in a statement said that Japan's total car demand in fiscal 2008 will be 5,306,100 units, down by 0.6% YoY from fiscal 2007, JAMA and crude oil prices are expected to stay high this year and will likely impact sales of commercial vehicles. The breakdown of 5,306,100 units is: passenger cars 4,425,000 units, up by 0.4% YoY, trucks 866,000 units, down by 5.3% YoY and buses 15,100 units, down by 1.9% YoY.

For January to December 2008, the association projected domestic automobile demand to be 5,319,400 units, down by 1.2% YoY.

Regarding the recent currency fluctuations, Mr Fujio Cho chairman of Japan Automobile Manufacturers Association said that automakers see little impact for the current financial year, as each automaker had set currency conversion rates in advance. He added that “But if this continues into the next financial year, it will have an impact on automakers.”

He said that "There are two sides. The positive aspect of the stronger yen is it makes crude oil and [imported] raw materials cheaper. But negative impacts are far bigger.”