Japan New Car Sales Rise to 15 Year High

Japan’s new vehicle sales in January, excluding minivehicles, rose 27.5 percent from a year earlier to 292,446, the highest figure for the month since 1997, due to increased demand ahead of the sales tax hike in April, the Japan Automobile Dealers Association said Monday.

Sales of minivehicles with engines no larger than 660 cc grew 32.1 percent to 203,659, a record high for the month since 1967 when comparable data became available, the Japan Mini Vehicles Association said.

The previous record for new car sales in January excluding minivehicles was set in 1997, shortly before the last sales tax increase from 3 percent to 5 percent. The rate will be raised to 8 percent in April.

“In addition to the favorable impact of Abenomics (economic policies advocated by Prime Minister Shinzo Abe) and introduction of new models, sales were boosted in January by a buying spree” before the sales tax hike, a JADA official said.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza