Satoshi Aoki, chairman of Japan Automobile Manufacturers Association Inc (JAMA) and Honda Motor Co Ltd, made comments on the state of sales and production inside and outside Japan at a regular press conference April 24, 2009.
"I am expecting the subsidy system for purchasers of environmentally-friendly cars, which the Japanese government included in its additional economic policy, to make a great contribution to the realization of a low carbon society and the recovery of the sluggish automotive sales," he said.
Aoki considers that the subsidy system will lead to growth in orders because visitors have been increasing at car dealers after the government implemented reduction and exemption of automobile acquisition and weight taxes.
Asked whether he thinks the domestic automobile market had hit the bottom, Aoki said, "The domestic production continued to be seriously bleak in January to March. Though I think the production of cars for export is heading for recovery with inventory adjustments progressing, we have not yet determined that the market has hit bottom. We need to wait and see for a little longer."
JAMA estimates that the overall demand for four-wheel vehicles will be about 4.3 million units in fiscal 2009, factoring in the reduction and exemption of acquisition and weight taxes .
In addition, Japan's ruling parties have submitted a bill to offer a subsidy of ¥250,000 (approx US$2,589) to purchasers of cars that fulfill a certain mileage criteria after scrapping their cars that have been used for more than 13 years. JAMA believes demand will strengthen if this bill is passed.
The amount of the subsidiary will theoretically increase the auto sales by 690,000 units. JAMA is planning to analyze the effect and reflect it in its demand estimate as soon as the supplementary budget bill is passed, it said.
Regarding the US market's recovery, Aoki said, "Based on DSR (daily sales record), sales grew at an annual pitch of 9.5 million units in March, faster than the pitch of 9.2 million units in January to February. We have also determined the US market is recovering as financial institutes started to ease funding for sales finances."
"However, at Honda (where Aoki is the chairman), we have yet to see strong sales," he continued. "So, I am hoping that the incentives being discussed by the government will be realized and support automotive sales."
Referring to the report that Chrysler LLC and General Motors Corp will possibly file for protection under the bankruptcy law, Aoki said, "If that happens, the US economy as well as component manufacturers will be hit severely. But the companies won't collapse just because they file for Chapter 11. I only hope that the US market becomes healthy soon."
Source: Tech-On!
"I am expecting the subsidy system for purchasers of environmentally-friendly cars, which the Japanese government included in its additional economic policy, to make a great contribution to the realization of a low carbon society and the recovery of the sluggish automotive sales," he said.
Aoki considers that the subsidy system will lead to growth in orders because visitors have been increasing at car dealers after the government implemented reduction and exemption of automobile acquisition and weight taxes.
Asked whether he thinks the domestic automobile market had hit the bottom, Aoki said, "The domestic production continued to be seriously bleak in January to March. Though I think the production of cars for export is heading for recovery with inventory adjustments progressing, we have not yet determined that the market has hit bottom. We need to wait and see for a little longer."
JAMA estimates that the overall demand for four-wheel vehicles will be about 4.3 million units in fiscal 2009, factoring in the reduction and exemption of acquisition and weight taxes .
In addition, Japan's ruling parties have submitted a bill to offer a subsidy of ¥250,000 (approx US$2,589) to purchasers of cars that fulfill a certain mileage criteria after scrapping their cars that have been used for more than 13 years. JAMA believes demand will strengthen if this bill is passed.
The amount of the subsidiary will theoretically increase the auto sales by 690,000 units. JAMA is planning to analyze the effect and reflect it in its demand estimate as soon as the supplementary budget bill is passed, it said.
Regarding the US market's recovery, Aoki said, "Based on DSR (daily sales record), sales grew at an annual pitch of 9.5 million units in March, faster than the pitch of 9.2 million units in January to February. We have also determined the US market is recovering as financial institutes started to ease funding for sales finances."
"However, at Honda (where Aoki is the chairman), we have yet to see strong sales," he continued. "So, I am hoping that the incentives being discussed by the government will be realized and support automotive sales."
Referring to the report that Chrysler LLC and General Motors Corp will possibly file for protection under the bankruptcy law, Aoki said, "If that happens, the US economy as well as component manufacturers will be hit severely. But the companies won't collapse just because they file for Chapter 11. I only hope that the US market becomes healthy soon."
Source: Tech-On!
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