Car sales in Japan plummet by 8% during the month of August
In the first eight months of 2025, Japan's vehicle market has shown a robust growth, expanding by 6.1% year-to-date to 3,037,194 units. The Japan Automobile Manufacturers Association (JAMA) released registration data that highlighted this positive trend.
Toyota, the country's largest automobile brand, has been a significant contributor to this growth. The company's domestic sales rose by 8% to 941,416 units year-to-date. This strong performance places Toyota as the brand with the largest revenue in the Japanese vehicle market so far this year.
However, not all brands have experienced the same success. Nissan's sales were down by 13% to 280,477 units year-to-date. Honda's sales also declined by almost 8% to 413,376 units. These decreases could be attributed to the challenges faced by Japanese consumers, such as higher vehicle loan repayment rates due to the Bank of Japan increasing its interest rates last year.
Overseas brands accounted for just over 5% of total vehicle sales in Japan year-to-date, with German automakers leading the way. Mercedes-Benz, BMW-Mini, Audi, and Volkswagen were among the top performers in this category. Despite the strong showing of these overseas brands, domestic brands like Toyota, Mazda, and Daihatsu have managed to hold their ground.
Mazda's volumes recovered by 15% to 103,825 units year-to-date, while Daihatsu's sales rebounded by a significant 71% to 341,709 units. However, Daihatsu's strong performance comes after production stoppages last year due to a safety test rigging scandal. Other brands affected by these stoppages include Toyota and Mazda.
Sales of passenger cars rose by 6.4% to 2,565,036 units year-to-date, and truck sales were up by 4.8% to 465,255 units. However, sales of medium and large buses and coaches declined by 1.3% to 6,903 units year-to-date.
The positive growth in the Japanese vehicle market was not sustained in August 2025. The number of units sold in August was lower than the same month in the previous year (328,471 units). JAMA data also showed that Japan's new vehicle market decreased by 8% year-on-year to 301,221 units in August 2025.
Despite these minor setbacks, the overall trend in Japan's vehicle market remains positive, with domestic brands like Toyota, Mazda, and Daihatsu leading the way. The resilience of these brands, coupled with the continued growth in the market, bodes well for the future of the Japanese automotive industry.
