Japan July Vehicle Production Up, August Flat

09/03/96

Reuters has reported that Japan's July vehicle production rose, as several carmakers boosted output prior to the launch of new models. Analysts predict that the country's August output is likely to stay flat or even fall, before rising again in September.

Japan Automobile Manufacturers Association (JAMA) said that July vehicle production was up 9.5 percent from the previous July, reaching 953,010 vehicles. The rise represents a rebound from June's production drop.

"The July gain was mainly because carmakers increased output in July ahead of the summer holidays in August and several makers began producing new models," said a JAMA official.

Toyota Motor launched a remodeled Carina sedan on August 7 and Windom luxury sedan on August 21, while Mazda Motor introduced the Demio on August 26. Nissan Motor launched the Terrano Regulus sport-utility vehicle on August 27, and Daihatsu Motor put out the Pyzar compact wagon on August 28. Mitsubishi Motors will introduce a new Galant and new Legnum station wagon on Thursday, and Toyota is scheduled to introduce its new Mark II mainstay luxury sedan and its sister model in early September. Honda expects to launch its S-MX light minivan later this year.

JAMA said a weaker yen probably led to higher exports in July, which also helped to drive up production. JAMA expects Japan's July vehicle exports to rise 13 percent from a year earlier.

"In August, vehicle output is likely to be flat or just under year-ago levels because of the summer holidays. But in September and after, production is likely to mark gains because of the production of new models and ahead of possible strong domestic demand in January to March of 1997 ahead of an increase in the consumption tax," said the JAMA official.

The Japanese government will raise the consumption tax from three to five percent effective April 1, 1997.

Toyota's July output jumped 16 percent from a year earlier to 310,165, Nissan's rose 5.4 percent to 166,190, Mitsubishi's was up 0.1 percent to 108,439, Honda gained 18.5 percent to 94,944, and Mazda rose five percent to 63,593.

JAMA also said Japan's overall vehicle sales, including 660cc minivehicles, bounced back in July, rising 4.8 percent from a year earlier to 679,562 vehicles.

Paul Dever -- The Auto Channel