Recently Mainichi News reported the following:
The Japan Automobile Dealers Association etc. had announced on the second of this month that the total number of new cars sold domestically in October was 396,048, an increase of 4.4% compared to same month last year, and was a two-month continuous increase compared to the record a year ago. The country's eco-friendly car support plan which used tax reduction and purchase substitution assistance as the means was attributed to sales increase in cars including gas-and-electric-powered cars (HV). When the car sales registration was analysed according to the name of the company and the brand, Honda HV "Incite" etc. had car sales of 43,427, an increase of 29.9% which was a steady plus for seven continuous months. HV "Prius" etc. popular Toyota Motor had a continuous increase amounting to 133,877, an increase of 13.8% and was a three- month continuous increase. Nissan Motor Co. which was good at producing fuel efficient cars thus attracted tax reduction also had sales increase of 15.3% standing at 36,572 cars, and the 3 major companies recorded a two digit increase. However, there was a fact to consider: the U.S. Lehman Brothers Holdings failure last October that caused the following worldwide finance crisis had affected new cars sales and caused it to drop greatly. Therefore, the person who was related to the industry was prudent, (the executive of major manufacturer) saying that "The level on numbers of sales is still low, and cannot be called a real recovery".
Is the recovery of domestic car sales really an indication of economic recovery for Japan?