The FINANCIAL — Japan's domestic sales of new cars, trucks and buses fell from a year earlier in July, marking the 12th straight month of decline.
But the drop in sales was smaller than in the previous month, suggesting government steps to spur auto demand are beginning to pay off.
Sales in July dropped 4.2% to 289,927 vehicles after a 13.5% on-year fall in June, the Japan Automobile Dealers' Association said.
"The smaller drop suggests that tax breaks and subsidies provided by the Japanese government to buyers of fuel-efficient cars are gradually helping to stem the tide of falling sales," Nikkei News informs.
The Japan Automobile Manufacturers Association estimates that the measures will create demand for 1.0 million vehicles this calendar year. Total auto sales for the period are forecast at 4.86 million vehicles, their lowest volume in 31 years.
Auto sales, as measured by registrations of vehicles with the government, are closely monitored by economists since they are the first consumer spending numbers released each month. The figures don't include sales of mini-cars or mini-trucks.
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