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Japan auto lobby slashes financial year vehicle sales forecast

39313216 - 04_08_2016 - JAPAN-EARNINGS-AUTO-COMPANY-TOYOTA.jpg
Japan's auto industry lobby on Thursday slashed its forecast for new vehicle sales by 8 per cent to 4.845 million for the current business year citing a delay in the sales tax hike originally scheduled for next April.

[TOKYO] Japan's auto industry lobby on Thursday slashed its forecast for new vehicle sales by 8 per cent to 4.845 million for the current business year citing a delay in the sales tax hike originally scheduled for next April.

The new figure would represent a 1.9 per cent fall from the last fiscal year that ended in March 2016, the Japan Automobile Manufacturers Association said. It had previously forecast a 6.5 per cent rise to 5.258 million vehicles.

The government decided in June to postpone the sales tax hike, to 10 per cent from 8 per cent, by 2-1/2 years to October 2019.

REUTERS