Industry News

Japanese Auto Industry Braces For A Difficult Year

The Japanese auto industry is still struggling to deal with the effects of the natural disasters from last March.

The repercussions of the natural disasters which befell Japan earlier this year are still being felt in many ways, including the huge problems it has cause for the county's automotive industry. The Japan Automobile Manufacturers Association isn't expecting things to get better soon either. Toshiyuki Shiga, chairman of the group, has said that Japanese automakers are expecting a 14 percent drop in sales next year compared to this one.

Most of this is due to a huge drop in demand caused by the lack of availability of many models following the earthquake. Also at work is a change in Japanese government policy. This month the Japanese government cut subsidies for fuel-efficient vehicles, making them less attractive to buyers. Assuming the companies can make it through this rough patch, it is expected that sales will then, once again, pick up.

Latest News