Japan automakers’ May global sales drop 38% as lockdowns weigh By Reuters


© Reuters. FILE PHOTO: Employees wearing protective face masks and face guards work on the automobile assembly line during the outbreak of the coronavirus disease (COVID-19) at the factory of Mitsubishi Fuso Truck and Bus Corp. in Kawasaki

TOKYO (Reuters) – Japanese automakers’ global sales declined 38% in May, in the third straight month of big falls as most automotive factories and dealerships remained closed due to coronavirus lockdowns.

The country’s seven major automakers sold a total of 1.47 million vehicles last month, down sharply from 2.38 million units a year ago, according to Reuters calculations based on sales data released by these companies. But the decrease was smaller than the 50% tumble posted in April.

Global production at these automakers fell 62% to 918,974 units in May, compared to a production slump of 55% in April.

Car demand has plummeted globally since March as people were forced to stay indoors in most countries due to lockdowns to control the outbreak, leading to deep uncertainty about the longer-term economic impact.

Many countries have been easing their lockdown measures, but industry experts anticipate that it would take up to five years for demand to recover to 2019 levels.

Japan’s biggest automaker Toyota Motor Corp (T:) sold 609,460 vehicles in May, down 34% from a year ago. Nissan (OTC:) Motor Co’s (T:) sales fell 37.3% on year to 272,873 units, while sales at Honda Motor Co (T:) slipped 29% to 327,000 units.

Vehicle sales fell in nearly all regions, with North America and Europe being the worst hit. China was the only bright spot, where Toyota, Nissan, and Mazda Motor Corp (T:) reported higher sales.

Most automakers are preparing for a big financial hit from the pandemic due to the lockdowns in the United States and Europe. Toyota has said it expects an 80% profit slump this year, its lowest in nine years.

The pandemic has piled more pressure on Nissan, which had been struggling with falling sales and profitability even before the outbreak, forcing it to roll back on an aggressive expansion plan by ousted leader Carlos Ghosn.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*