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NTDTV

Japan Rebounds in the Eco-Car Market

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Redaktion

11. September 2009

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Lesedauer: 2 Min.

Global car demand crumbled in the wake of the Lehman Brothers collapse, but the world’s No.2 economy, Japan, is eyeing hybrids as one road back to recovery.

At leading dealer Netz Toyota, signs of recession are hard to find as customers flock to see the top-selling Prius, helped by tax breaks and subsidies under a government initiative to promote cleaner autos.

The Prius was Japan’s best-selling car in August for the third straight month, with over 21,000 leaving showrooms in a 5 percent jump on year.

A waiting list for delivery now extends to at least April, and Netz manager Norimitsu Wakagi says eco-business is booming.

[Norimitsu Wakagi, Store Manager, Netz Toyota]:
“Since the collapse of Lehman last year, our sales have gone down dramatically, but after government subsidies and tax breaks our sales have skyrocketed compared to the same period last year.”

Other environmentally-friendly cars have seen a boost from the incentives, and auto analyst Yoshiaki Kawano says demand should continue even when they end.

[Yoshiaki Kawano, Auto Market Analyst, CSM Worldwide]:
“We expect the Japanese economy to recover within the next three years, and if the sales of hybrid cars remain strong, hybrid cars will definitely become the key to boost the Japanese economy, pushing overall car sales even without the help of government subsidies and tax breaks.”

Still, Toyota, which still faces billions of dollars in losses, has asked the government to extend eco-subsidies until March 2012 as well as keep consumer tax breaks.

The world’s top automaker now plans to hike car output for the first time in 16 months, shifting gears as green car demand aids an eventual return to the black.