New car sales have seen a significant drop off in the U.S., but they will eventually recover. Japan is experiencing a similar drop off, but there is a real concern that sales might never recover. Whereas the automobile is still as status symbol and a logistical necessity in the U.S., Japan’s youth are quickly falling out of love with the car.
Japan’s auto market hit a high of 7.78 million units sold in 1990, but has seen a steady decline ever since. New car sales will total about 5.11 million units this year, with 2009’s sales expect to fall to below the 5 million unit mark for the first time in three decades, according to The Detroit News.
Although the slowing global economy is partly to blame for the drop off, a significant portion of the decline can be attributed to “kuruma banare”, the Japanese term for the ‘demotorization’ of the nation’s youth. “Young people’s interest is shifting from cars to communication tools like personal computers, mobile phones and services,” Yoichiro Ichimaru, Toyota ’s head of domestic sales, told The Detroit News.
Automakers haven’t completely given up on trying to selling the youth new cars, they just need to find new ways to do so. Toyota has built an entire mall complete with several showrooms to entice the nation’s youth while Nissan has resorted to hiring big name stars for commercials and launching several customization programs. However, the new methods have yet to strike a chord with the younger generations, which could see automakers relying more heavily on exports in the coming years.
