Japan new car sales, July 2014: Down slightly, which is good

Picture courtesy shibuya246.com

Japan’s new car market continues to baffle seasoned observers. Overall registrations of new automobiles in Japan were down 2.5 percent, as compound data provided by the Japan Mini Vehicles Association and the Japan Mini Vehicles Association show. Why is a decrease a good thing? The observer will recall that Japan’s long announced sales tax rise in April created a run on big ticket items in the months before, resulting in a 20.7 percent gain in the first quarter of the year. A massive hangover was widely assumed for the following months. Double-digit decreases for the rest of the year were treated as a given. It just did not happen that way. [Continue Reading]