Fall in Japanese Auto Sales Marks Seven-Month Low
Japanese Automobile Sales Decline in July 2025
New automobile sales in Japan saw a decrease of 3.6% in July 2025 compared to the same period the previous year. This marks the first decline in seven months, according to data released by the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.
The decline was mainly driven by significant drops in sales at Nissan Motor Co. and Honda Motor Co. Nissan's new automobile sales decreased by 18.9%, attributed to delays in releasing new models. Honda's new automobile sales also decreased by 12.3%.
Despite these declines, Toyota Motor Corp. and Subaru Corp. also experienced a decrease in new automobile sales. However, Mitsubishi Motors Corp. and Mazda Motor Corp. reported strong sales, bucking the overall trend.
The total number of new automobile sales in July was 390,516 units. Sales of passenger vehicles and freight vehicles combined accounted for 64.6% of the total sales, with a decrease of 4.2%. Sales of minivehicles accounted for 35.4% of the total sales, and declined by 2.6%.
High vehicle prices, ongoing supply chain disruptions such as semiconductor shortages, and other economic pressures have been factors affecting auto sales in recent years. Rising interest rates also contribute by making car financing more expensive. These factors may have contributed to the July 2025 sales decline, reflecting a combination of company-specific issues (e.g., Nissan's new model delays) and broader market challenges impacting the Japanese automobile industry.
[1] Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association data [2] Various economic pressures and rising interest rates contributing to the decline in automobile sales in Japan, as reported by various sources.
The decline in new automobile sales in Japan has further impacted the broader automotive industry, with significant drops at Nissan and Honda potentially linked to delays in releasing new models. [1]
In contrast, finance costs may have impacted Mitsubishi Motors and Mazda, as they reported strong sales figures despite the overall market decline. [2]
