Japanese Buyers Go for Small Recreational Vehicles

09/24/96

Reuters has reported that Japanese consumers may not be buying expensive European cars like they were, but they still want cars that will distinguish them from their neighbors, and they are turning to smaller, cheaper recreational vehicles to satisfy the urge.

The popularity of recreational vehicles rose in Japan when the "bubble economy" of the late 1980s popped and consumers couldn't afford to keep buying high-priced luxury cars from makers like Mercedes and BMW.

Nikko Research analyst Noriyuki Matsushima predicts that the RV boom will continue, although he thinks "demand will focus more on compact models with engines of around 1500 cc." Matsushima indicated Mazda's Demio--a compact station wagon with a 1.3 or 1.5 liter engine--as a good example of the trend.

The Demio is Japan's first small station wagon to offer sedan comfort and sport utility vehicle features, like four-wheel drive; the Demio sells for under $7,500. Demio sales have nearly tripled Mazda's goals since the car was launched in mid-September. Mazda projected 5,000 sales per month, but announced that it has received 14,500 orders in less than half a month. The automaker has planned extra days of production in October to address the unexpected demand.

Daihatsu, Toyota, Nissan and Honda are also addressing demand for small recreational vehicles, either with vehicles that are already on the market, or planned. Daihatsu launched its Pyzar 1.5-liter compact wagon on August 28, and saw 3,500 domestic orders in the first two weeks. Daihatsu had set Pyzar sales goals at 2,500 vehicles monthly. Toyota will offer a 1.5-liter compact vehicle which has been nicknamed "Mammy's Cosy Room" within the company because it's "comfortable and small." Nissan will soon introduce a compact car that uses components of its March 1300 cc compact, which is marketed abroad as the Micra. On October 3, Honda will launch a 1300 cc Logo hatchback compact car. Simultaneously, Honda is abandoning its old mainstay, the 1300 City minicar, which was a big hit in Japan in the early 1980s.

Paul Dever -- The Auto Channel