Nikkei. Domestic passenger car production in Japan is expected to fall for the first time in five years in fiscal 2008, sliding 7% below initial projections to 9.7 million units due to decreases in exports.
Initially, Japan’s eight major carmakers—including Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co.—planned to produce a total of 10.4 million vehicles this fiscal year, up 3%. However, car sales have been sluggish worldwide since autumn, when the US financial turmoil surfaced, putting the brakes on exports.
The downturn has forced the automakers to scale back their production plans by more than 700,000 units.
Japanese carmakers are also reducing their overseas output, mainly in the US and Europe, where demand is plummeting. The eight companies will cut combined non-Japan production by 7%, or about 800,000 units, from the initially planned level, bringing the total worldwide reduction, excluding certain commercial models, to 1.5 million vehicles.