DEMAND FALLING

Press, Volume CXI, Issue 32612, 21 May 1971, Page 7

DEMAND FALLING

Although four Japanese car models have joined the group of the world’s top 10 best-selling passenger cars in the last few months, domestic demand in Japan has dropped, and is not expected to improve.

Japanese car production was up 13.1 per cent in 1970 to more than 5.2 m vehicles, but since late last year production has dropped more than 10 per cent and manufacturers have been trying to reduce their stockpiles of new cars, authoritative Japanese banking sources report.

The fall-off in domestic demand is said to have been caused by saturation of the light-truck market, defects in cars, traffic congestion, pollution and accidents, and new taxes on cars.

These problems will persist, the sources say, and this will prolong the recession in the industry. Production in 1971 is expected to reach 5.6 m units, with exports to the United States up by 47 per cent But it is also expected to be the Japanese industry's

peak year, with the expansion rate slowing from 1972 onwards.

The Japanese models among the top 10 in 1970 were the Toyota Corolla an*' Corona, and the Datsun 1000 and Nissan Bluebird. The first five were Volkswagen, Ford, Chevrolet, Corolla and Corona.

The production of American cars, in contrast, dropped during 1970. Three makes, Buick, Oldsmobile and Pontiac, dropped from their previous places in the top 10 models.