The Japanese version of the new Honda Insight has helped prop up the carmaker's sales.
In a sign that the Japanese economy is gaining some life, car sales jumped 18.3% in November, the industry reported today. That marked the third monthly increase in a row following 13 straight months of decline.
Of course, the turnaround needs to be put in perspective, since late 2008 saw sharp declines. In fact, the latest 18.3% increase barely offsets the 18.2% drop in the Japanese car market in November 2008.
On the whole, the market operated at a flat, Seasonally Adjusted Annual Rate, or SAAR, of 5.3 million, which is barely half the Japanese market’s one-time peak.
(Click Here for Joe Szczesny’s report on the seemingly irreversible, long-term decline of the Japanese car market.)
November demand for minicars, particularly popular on the crowded urban streets of Japan, surged 6.5%, but so-called non-minis grew 36%.
Toyota dominated the November market, its non-mini sales increasing 40% compared to year-earlier numbers, giving it a 51.8% of the non-mini market. Overall, Honda sales were up 31%, which a report from Deutsche Bank declared, “clearly positive.” Honda was helped not only by the new Insight but also its new Stepwagon model.
Nissan, “remains weak,” the Deutsche Bank reported, in part because of its lack of hybrids, something Japanese consumers are increasingly coming to demand. The maker’s non-mini sales were up just 22%.
The surge in the Japanese market has been heavily driven by government-backed incentives. Add the weak performance of the market last year, and both Toyota and Honda have forecast big gains during the second half of their fiscal years, which wrap up on March 31st.