With U.S. auto sales figures for November just around the corner, the industry is bracing for more bad news. But America isn’t the only place where new vehicle sales are hurting. According to a new report, sales in Japan could be the lowest since 1974 — roughly 3.25 million units for 2008.
Domestic sales in the country dropped 5 percent in September, and 13 percent in October. November is shaping up to be the worst month yet, with sales expected to fall 33 percent, according to the Nikkei news service. Even if December 2008′s sales are equal to December 2007′s, new car sales in Japan are on track to hit a 34-year low.
The sales slump began with large models and imports, but even the most fuel efficient minivehicles, which have engines of 660cc or less, are selling at a slow pace. Such cars are not included in regular automobile sales reports, but even if they were, overall sales so far this year would be down 25 percent.
The slowing demand will lead to further reduction in production, which is sure to impact thousands of workers.
