JAPAN STIMULUS LIFTED OCT SALES OF HYBRID CARS, SUBCOMPACTS

Environmentally friendly vehicles and compact cars dominated the upper rankings for Japanese new-car sales in October, buoyed by tax breaks and subsidies.

According to the latest reports by the Japan Automobile Dealers Association and the Japan Mini Vehicles Association, Toyota Motor Corp.'s (TSE:7203) Prius hybrid topped the rankings, with sales soaring 420 per cent year on year to 26,918 units.

Honda Motor Co.'s (TSE:7267) Fit came in second, with a 26.7 per cent increase to 15, 444 units, switching positions with Suzuki Motor Corp.'s (TSE:7269) WagonR minivehicle, whose sales slipped 1.2 per cent to 15,067 units.

Toyota's Passo subcompact ranked sixth, with its sales jumping 70.8 per cent to 10,575 units.

Total new-car sales including minivehicles rose 4.4 per cent to mark a second consecutive month of increases. A broader range of models recorded sales gains in October, whereas only hybrid and a small band of other cars enjoyed popularity in previous months.

For example, Toyota's Voxy minivan came in 11th on a 54.2 per cent sales surge, and Nissan Motor Co.'s (TSE:7201) Serena minivan was ranked 13th, with sales shooting up 73.6 per cent.

As a result, 19 models posted sales of more than 5,000 units in October, compared with 15 a year earlier.

Tax breaks and subsidies have been fueling sales of green vehicles and compact cars, but they have created a tougher situation for minivehicles, which are less expensive and thus offer smaller savings.

Third-ranked WagonR's sales dipped 1.2 per cent, while fourth-placed Daihatsu Motor Co.'s (TSE:7262) Move suffered a 30.8 per cent sales drop.

(Nikkei) rw

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