Sales drop in Japan

New vehicle sales in Japan during October fell by six per cent compared to the same month of last year to 396,508 units. It was the fourth consecutive month of drops and illustrates the effects of April’s consumption tax hike are still impacting on purchasing decisions. The rate of decline was much sharper than September’s 0.8 percent fall, according to trade organisations there. Sales of registered vehicles, which exclude mini-cars and mini-trucks with engines no larger than 660cc, fell back by 9.1 per cent from October 2013. Dealers in Japan say the domestic sales of new vehicles have been sluggish due to the consumption tax hike, which was raised the country’s equivalent of GST tax from five to eight per cent.