All Japan newsese car industry is expecting its worst year since 1978 as it still pays tribute to the supply chain disruptions caused by the March natural disasters.
Sales will go down by 3.3 percent during the current fiscal year, ending next March, according to the All Japan news Automobile Manufacturers Association. About 4.45 million cars are expected to be sold during the period.
It is the first time during the current fiscal year when the industry body is voicing its expectations, although it normally does so in March. But this year it delayed its forecast, blaming the difficulty of foreseeing through the year because of the huge impact of the natural disasters on the country and its economy.
The association is however more optimistic for the future. It expects a sales rebound starting September, as output returns to normal levels. For the September-March period, a 17.4 percent year-on-year rise in sales is expected, compared with a 28.6 percent drop for the five months through August.
The market remains however difficult. Even though demand will rebound more than 10%, overall demand will still be sluggish, the association’s chairman, Toshiyuki Shiga, warned.