Japan November auto sales drop on economic blues

TOKYO, Dec 3 Reuters reported that the downturn in demand for Japanese vehicles accelerated in November, with year-on-year sales falling for the third straight month as Japan's economic gloom deepened, industry data showed on Monday.

Overall vehicle sales for the month fell 4.9 percent to 474,550 units, according to data from the Japan Automobile Dealers Association and the Japan Mini Vehicle Association.

Ordinary vehicle sales were hit particularly hard, dropping 9.3 percent to 311,015 units, with industry heavyweight Toyota Motor Corp showing a surprisingly steep decline of 18 percent.

Sales of cheaper 660cc minivehicles, which account for one third of the market, rose 4.8 percent to 163,535 units.

Analysts said the figures, which were not adjusted for the extra working day in the month over the previous November, were a bit worse than expected.

The data could signify that the auto sector, one of the few bright spots in what has been a dismal year for corporate Japan, is being increasingly affected by the growing economic malaise, they said.

``The surprise has been that the vehicle market had held out for as long as it did,'' said Christopher Richter, analyst at HSBC Securities.

``It's basically finally catching up with all of that negative economic news that we've been hearing for some time.''

Toyota stood out as a disappointment, with ordinary vehicle sales declining 18 percent to 131,056. Overall sales for Toyota -- including its minivehicle unit Daihatsu Motor Co Ltd -- fell 13.2 percent to 175,255 vehicles.

Japan's top automaker has lacked hit cars such as it had last year with vehicles like the remodelled Corolla and its Vitz series, and its sales at the end of last year were boosted by new models. But analysts said they were still surprised by the size of its decline.

``It's clearly bad, because it also means a substantial underperformance relative to the market,'' said Clive Wiggins, an analyst at Commerzbank Securities.

HONDA, MITSUBISHI STAND OUT

Of Japan's top five automakers, third-largest Honda Motor Co Ltd continued to stand out, extending its impressive year-long performance in registered vehicle sales with a 20.2 percent rise to 49,989 vehicles on strong sales of its new Fit subcompact and strong minivan line-up.

But Honda's overall sales slowed from the previous month, and were up only 8.9 percent year-on-year due to a 7.5 percent drop in the less profitable minivehicle sector.

In contrast, Mitsubishi Motors Corp rode a 56.5 percent jump in November minivehicle sales to overcome a 8.2 percent drop in ordinary vehicle sales and post a 26 percent rise in overall sales to 42,969 vehicles.

Mitsubishi, still recovering from a major recall scandal and plagued by a dearth of new products, saw its recently launched eK-Wagon minivehicle send the company's minivehicle sales soaring for a second-straight month.

Japan's second-largest automaker, Nissan Motor Co Ltd , which has yet to begin selling minivehicles, saw its sales fall 1.5 percent to 56,745 units.

Japan's fifth-largest automaker, Mazda Motor Corp , which has been suffering from a lack of new models this year, saw overall sales plunge 18 percent to 18,970 vehicles.

For the year to date, overall Japan industry sales are down 0.7 percent at 5.47 million vehicles.