Abenomics Update: New Car Sales In October Plunge 24.9% In Japan

It appears that Abenomics continues to fail in Japan, as a worldwide global recession in automobile sales combined with Typhoon Hagibis, which pummeled the Kantō region of Japan during October, both contributed to a huge drop off in new car sales for the month. Japan's recent increase in its consumption tax was also cited as a potential drag on sales.

Sales of new cars in Japan (including minicars) fell 24.9% year over year, according to the Japan Automobile Sales Association, Nikkei writes.

Sales of registered vehicles fell 26.4% during the month, to 192,504 units. Honda saw its numbers plunge by 40.5%, Toyota fell by 21.7% and Nissan fell 36.9%. 

Vendors attributed the drop off to the typhoon and "other weather factors and disasters" during the month.

Minicar sales fell by 22.3% to 122,280 units, the first decrease in 3 months. Sales from Suzuki fell 6.2% and the numbers from Daihatsu plunged 26.3%. 

“It cannot be said that there was no impact from the consumption tax hike, but it is necessary to check the trend of several months,” a spokesperson from the Japan Automobile Manufacturers Association said. 

Recall, the country raised its sales tax from 8% to 10% at the beginning of October. The new rate applies to nearly all goods and services, including vehicles, and excludes most food.